FutureCash Flow

At MTCM, we facilitate the securitization of future cash flows, allowing investors to access returns based on projected income streams. This process involves acquiring risks associated with various types of future cash flows and issuing securities to investors whose yield and value are linked to these cash flows.

Types of Future Cash Flows

Our expertise encompasses a wide array of future cash flow types, including:

Trade Receivables

Future payments due from business transactions.

Real Estate Financing

Cash flows from construction or building projects.

Long-term Sale Contracts

Securitizing discounted cash flows from sales over multiple years.

Royalties

Income from royalties received by artists, authors, and researchers.

Service Contracts

Future income from service provision agreements.

Rental Agreements

Cash flows from rental properties.

Licenses and Leasing

Future payments from licensing or leasing agreements.

Litigation Proceeds

Potential cash flows from court cases, arbitration, or negotiations.

Future Cash Flow Securitization Process

Risk Acquisition:

The SPV acquires the rights to future cash flows from various sources.

Security Issuance:

The SPV issues securities to investors, backed by these future cash flows.

Yield Distribution:

Investors receive returns through coupons or value appreciation of zero-coupon bonds, linked to the future cash flows.

Example Structure of Future Cash Flow Securitization Process

Formation of SPV:

Establish the SPV to acquire and securitize private loans.

Bond Issuance:

Issue various types of bonds, including convertibles, backed by private loans.

Investor Distribution:

Market and distribute these bonds to institutional investors.

Yield Distribution:

Provide investors with returns based on the income generated by the underlying private loans.

Key Features of Future Cash Flow Securitization Process

Discounted Cash Flow Valuation:

Future cash flows are discounted to present value, providing a basis for immediate investment returns.

Yield Based on Projections:

Investors receive yields reflecting the risk and time value of money associated with future cash flows.

Capital Raising:

SPVs raise capital through the issuance of securities, funding various business activities and investments.

Key Benefits of Future Cash Flow Securitization with MTCM

Immediate Capital Access:

Converts future income into immediate capital.

Diversified Investment Opportunities:

Offers a range of securitized future cash flows to investors.

Attractive Yield:

Provides investors with yields based on discounted future cash flows.

Risk Mitigation:

Investors receive returns based on carefully calculated projections, considering potential uncertainties.

At MTCM, our expertise in future cash flow securitization provides investors with diverse opportunities to invest in projected income streams, offering immediate capital access and attractive yields. By transforming future cash flows into tradable securities, we enhance liquidity and investment potential in various sectors.