Bream Dialogue



In 1766 Captain James Cook was appointed to command the HMS Endeavor and start a series of European exploration voyages that had one of its most brilliant stages on the HMS Beagle and Darwin. 

On his journey across the Pacific Ocean, Cook sailed thousands of miles through uncharted parts of the globe, mapping the lands of New Zealand and Hawaii in great detail and on a scale never before achieved. As he progressed on his voyages of discovery, he explored and named various places, as well as recording the locations of islands and coastlines on European maps for the first time.

I can imagine the surprise among the men of the Royal Navy at seeing a kangaroo for the first time. The image of such a herbivore leaping 9 meters in length with a cub sticking out of the marsupial pouch must have been unique. Legend has it that when asking the aborigines about such an animal, the answer was always the same. Kan Ghu Ru, which translated was not the name of the aforementioned animal as one might expect but a much more traditional one, “let’s see little English, you just got here and I really don’t understand you at all”

Whether the legend is true or not, at ADAPTA SOCIOS we want to start a series of articles that help in this dialogue of sea breams that we often see between the investor and the financier.

Taking advantage of the fact that I have your attention, I begin with one of the most complicated issues, less analyzed, we believe that it has greater potential for the coming years and where we at ADAPTA SOCIOS are true specialists. The VEHICULIZATION of assets. 

This, which sounds so strange, is neither more nor less than the way of channeling the distribution of certain investments. 

As an example, I describe a real case in which we have worked at ADAPTA SOCIOS with a bank that wanted to eliminate real estate assets from its balance sheet to distribute them in turn among its private banking.

That is, to securitize a real estate asset, the physical property of the property, or the promise of payment, mortgage debt. NPL…, in a flexible financial instrument designed to measure. Or what is the same, a note. 

There are multiple alternatives, but the traditional one is to create a dedicated issuing vehicle (a company for example in Luxembourg) that issues the financial instrument (the note). 

The issuing vehicle has limited operation regulated in a management contract that provides legal certainty to the investor. And a contract with the servicer that provides the management of the real estate asset. 

Thus, the dedicated issuing vehicle (the SPV) buys the real estate assets and sells a note to individual investors.

This note has the advantage of being transferable to client accounts. It also has the flexibility to define a dividend payment, amortization of partial principal tailored to the client. 

As such, it allows the distribution of distribution commissions, whether recurring or based on success. 

A final important point is that in the same way that the evolution of a European stock fund does not infect the Spanish bond fund, each dedicated issuing vehicle is totally independent of the management of another. 

This year marks the 500th anniversary of the start of the circumnavigation of the world begun by Magellan and completed by Elcano. We hope that this article will help you as an investor to explore the waters of investments and that you come to fruition like Elcano avoiding the end that Magellan and Cook shared at the hands of local tribes. 

Interested in learning more about Adapta Socios?


Reacciones de los mercados esta semana

Market reactions this week

Market reaction to possible ceasefire between Russia and Ukraine. The rumor of an agreement in the war improves the mood of the markets and the indices manage to recover 50% of the annual fall.


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