Ecosystems
Welcome to the SecondMarket Ecosystem, a comprehensive gathering of product and service providers for illiquid assets. All available right here on SecondMarket! Sign up and gain access to analytics, data, legal services, private placements, third party research and valuations. The SecondMarket Ecosystem… bringing transparency to the marketplace!
Auction-Rate Securities
Auction-rate securities (ARS) are long-term securities issued by student loan lenders, closed end funds and municipalities which were sold as liquid, short-term investments until the traditional secondary market mechanism of Dutch auctions began failing in February of 2008. SecondMarket has emerged as the secondary market for the approximately $160 billion in ARS that remain in the marketplace.
Bankruptcy Claims
Most unsecured claimholders, which hold payables and other debt against bankrupt companies in Chapter 11 proceedings, must potentially wait years to receive partial payment of what they are owed through the formal bankruptcy process. SecondMarket provides the network through which creditors can monetize their claims immediately, allowing them to put their cash to use.
Collateralized Debt Obligations
Due to the insolvency and financial instability of the traditional large dealers, virtually no secondary trading market exists, leaving investors nowhere to turn to find buyers for their troubled CDO investments. SecondMarket has leveraged its state-of-the-art technology, deep buyer and seller bases, and centralization of data and analytical tools to create an independent marketplace that offers free information, listing, and trading for the $1 trillion CDO market to help correct this imbalance.
Limited Partnership Interests
Capital allocation to alternative investment managers has increased rapidly over the past 5-10 years, now representing $2 trillion in assets. As investors seek to limit their exposure to and otherwise rebalance their deployed capital among these investment managers, mainly through investments in venture capital, buyout, hedge fund and real estate limited partnerships, SecondMarket is poised to capture a substantial portion of these secondary market transactions.
Mortgage-Backed Securities
RMBS and CMBS issued by the private sector, now representing over $2.5 trillion in securities, have come under significant pressure from the downturn in housing prices, the sub-prime mortgage fallout, as well as regulatory uncertainty. SecondMarket is leveraging its technology and deep buyer and seller bases to establish a transparent, centralized marketplace for a wide variety of residential and commercial mortgage-backed securities.
Private Company Stock
Whether the private company that you manage or have a stake in is awaiting an IPO or other liquidity event, or management would like the company to remain private, SecondMarket's Private Company Market can help you. Through SecondMarket, private companies have the ability to opt-in to an organized and controlled private marketplace environment, with the ability to communicate with both existing shareholders and potential new investors from SecondMarket's market participants.
Restricted Securities
SecondMarket has been facilitating transactions in restricted securities since its founding in 2004. Restricted securities, which include stock, options, warrants, debt, and other convertible securities that are generally issued by public companies which are not registered with the SEC or are otherwise restricted, represent up to 50% or more of the capital structure of many public companies securities.
Whole Loans
Due to the continued distress of financial institutions, as well as a desire to continue to de-lever, there has been a substantial increase in the need for these institutions to sell their whole loans. As a result, SecondMarket has opened up its marketplace to enable the buying and selling of individual and portfolios of residential and commercial mortgages and a wide variety of other consumer, commercial and construction loan types.
