Date

26 Feb 2020

Attendees

Vipin Bharathan dlt.nyc working on many
Kirthi K - Reinsurance market, consultant
Manivannan Pillai - Swapshub working on developing a product based on CDM and Digital Currencies
Si Chen - Background in MBS and other credit securities as a trader
Brian Behlendorf (Deactivated) - ED Hyperledger
@Sanjay Intain - securitization PoC and now productionization on ABS (Asset backed Securities)
Natalia Garciagonzalez working in the issuance of corporate securities and vice-chair
Ron Quaranta
@Prasad from IBM GB- possible talk on Fabric based tokens (FSS Financial Services)

Goals

Discuss Securitization
Discuss HGF - not done
Discuss eThaler project-
Introduce custody project - not done

Discussion items

5 m	Anti-Trust/Code of Conduct/Intros	Vipin Bharathan	Antitrust Policy. Code of Conduct.
10 m	Smart Contracts for Securitization	Si Chen	proposal
10 m	eThaler	Manivannan Pillai Vipin Bharathan	Slides
15 m	Projects	stanislav.liberman Ron Quaranta Kirthi K Natalia Garciagonzalez	CMSIG-Projects
10 m	Custody workshop	Vipin Bharathan	Not done

Recordings

audio

There is no video because there were no presentations.

Minutes

Anti-trust policy & Code of conduct
Introductions (tried to add that detail up top)
Si Chen talked about the smart contracts for securitization
- He wants Open Source Smart contracts to standardize and make transparent processes around analytics and securitization in general for all participants (Rating Agencies, Regulators, Investors, Trustees and servicers)- he feels this should be data standard independent.
- He explained over-collaterization & Subordination
- Over-collaterization - Use a pool of loans that is much larger than the securities issued against it (i.e. $500M of loans backing a $350M issuance)
- Subordination- use a structure that has senior and junior tranches, junior tranches (higher yield) absorb first losses due to default and senior (lower yield) protected.
- These are ways to protect investors and give them access to products that conform to the level of risk that they are willing to tolerate.
- Sanjay talked about challenges in implementing this in Intain, they had to separate out several functions from chaincode into Java based helper functions mainly the payouts to investors, mainly due to chaincode latency and scaling issues. Motorcycle loans from a pool of 5000 loans have to track cashflows.
Vipin talked about the eThaler project, motivation and implementation timeline with a call on Friday. Any securitization project consists of three items 1. Identity 2. Assets and their management 3. Payment rails through CBDC or attachments to stablecoins or other tokens.
Mani talked about 1. Using basic definitions 2. Distributing the TTF worksheet.
Who can be on the eThaler call? Anyone who is interested 1.Preparation needed 2. Basics cannot be repeated. We have set an aggressive timeline (4-6 weeks)

Action items

Presentation by Sanjay on Intain securitization projects
Presentation by Prasad on IBM
Meeting Invite for Friday 11 am EST by Vipin Bharathan eThaler project add more details for prep work

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