Optimising the organisation of structured investments for offshore life companies was one of our core propositions when we originally set up Affinity Capital. The inefficiencies that previously existed between insurers and their investment banks for this particular asset class created a significant burden for all parties involved, leading to strained relationships and stunting the industry’s growth.
Banks were inevitably forced to release inferior structured products at higher costs to investors in an effort to cover the time and resources spent managing the ever-growing office administration issue. Moreover, the disorganisation led to trade failures, settlement breaks, compliance issues, additional expenses and a multitude of other problems.
The result was that neither the life companies nor the banks were happy with the arrangement and many organisations on both sides began pulling out of the structured investments space. Through our FinTech ACE solution, Affinity has revolutionised how businesses approach these processes and alleviated a considerable workload from offshore life companies and their banks.
While trade support formed the bedrock of our early services to offshore life companies, Affinity has since expanded its offerings to provide additional value to clients. We pride ourselves on delivering a tailored service designed to facilitate your structured investment journey across the entire trading chain, from creation through to settlements, after-trade monitoring and more.
Traditionally, offshore life companies have worked with Affinity primarily for our ACE service. This offering is built around our sophisticated trade recognition system and reconciliation software, which automates the structured note order process between offshore life firms and investment banks.
Affinity does all the trade support legwork; we collect faxed, emailed and telephoned instructions from insurers and individually validate and record each one before sending a daily summary to each life company. Every single trade is validated and confirmed multiple times during the book-building phase. This ensures a flawless hedging process, strike date and settlement.
Shouldering this workload has not only reduced the burden on life companies and investments banks but also minimised the number of lost orders, settlement issues and payment delays on structured note trades. This in itself has led to more competition offshore, better product offerings and a far superior quality of investment available to the end investors, issues that Affinity is very passionate about.
The Affinity team has extensive knowledge and experience of the structured investments space. Our years of experience on the trading floors of the world’s most renowned investment banks means we have unique insight into how to simultaneously fulfil the needs of offshore life companies and structured note issuers.
Crucially, we understand that in order for the structured investment industry to thrive, everyone needs to get a fair deal. Through our innovative mix of our ACE service, Panel and Pricing Models and Equity Partnerships, offshore life companies can benefit from a wholesale solution that provides them with access to the best structures investments available.