DelphX Capital Markets Inc. announced the first issuance of its proprietary Collateralized Put Options (CPOs) and Collateralized Reference Notes (CRNs), marking the first institutional issue of this new class of structured products. The inaugural transactions were completed in conjunction with custodian BNY Mellon, placement agent LPS Capital, and two institutional investor accounts. This successful process marks a major milestone for DelphX, finalizing a multi-year development effort and initiating the long-awaited commercialization phase.

With the success of these first transactions, DelphX has now proven the process for issuance of its CPOs and CRNs, validating the relevance of these solutions as part of institutional investor credit strategies. The Company relied on significant industry interaction and feedback during the lengthy development process, creating widespread awareness within the fixed-income community prior to launch. This "go-live" set of transactions will now enable DelphX to pursue a full product roll out via leading bond dealers who have been monitoring the development of these industry-first products.

The Company also anticipates strong interest from financial entities who cannot or will not utilize CDS or similar derivatives due to their investment mandates, but are able to use DelphX CPO and CRN products. The timing of the launch coincides with a sharp increase in transaction volume of the closest competing financial vehicle, credit default swaps (CDS), which Tradeweb reported rose to USD 811 billion in March 2022, up from USD 330 billion in February 2022. Recent growth in this market represents a major acceleration from 2021, when global dealer banks' outstanding notionals of over-the-counter CDS grew 5% to $8.8 trillion (as reported by the Bank for International Settlements).

The DelphX product offerings represent a timely new set of risk mitigation and yield-enhancement securities fundamentally improved over CDS and other existing structured products.