The Master Participating Lender Network affords a wealth of services and benefits to its Participating Lenders. In order to become part of the Participating Lender Network, a candidate Participating Lender must submit certain qualification documents to the Network Manager and enter into a foundational agreement, the Master Participation Agreement.
This agreement is entered between each Participating Lender and the Network Manager and establishes the mutual performance obligations of the parties; specifically, the Participating Lender's role in the Network and the acquisition and servicing process for a Credit Participation Certificate. Because all Participating Lenders execute this same master agreement, a relationship evolves not only with the Network Manager, but among the Participating Lenders themselves in which expectations and performance obligations are consistent and clearly understood, both within the context of the CPC structure and the operating framework of the Network.
Through a standardized and universal process, the Credit Participation Certificate and the Participating Lender Network:
a. applies a master set of credit underwriting criteria as the basis to offer a CPC for participation at individual values of as little as US$100,000;
b. promotes transparency and originator accountability as to the underlying credit and performance of each participated Credit;
c. permits Participating Lenders to directly select individual Credits to be held on portfolio rather than relying on a third party underwriter to select and bundle underlying Credits;
d. provides Credit reporting and performance track records;
e. applies a common web-based electronic platform to enable the efficient offering, commitment, purchase and remarketing of CPCs;
f. breeds greater market liquidity due to the potential evolution of trading strategies in CPCs that fit specific risk appetites;
g. enables Participating Lenders to move in and out of particular Credits with greater ease;
h. fosters a forum to acquire CPCs linked to other geographic regions without loss of access to information pertaining to the underlying operation of the Credit; and
i. fuels the long-term creation of CPC Futures Contracts which will aid in hedging credit market risks.
Inquire about becoming a Participating Lender by clicking on "Inquire Now" under "Become a Networked Lender" in the upper righthand column of this page.