Your investment, and how you verify it
The instrument
An asset-backed security typically is a note (like a bond) that are serviced (i.e. receive payment of interest and repayment of principal) from cash flows received for a pool of contracts — such as equipment leases, power-purchase agreements, vendor-finance arrangements — that are transferred into a bankruptcy-remote vehicle. The notes are secured by the physical assets behind the contracts. Senior notes are paid first; junior notes are paid once the senior position is sufficiently covered, and covenant breaches throttle junior distributions until the pool cures.
The problem with the traditional approach
Traditionally, your confidence in that pool rests on one-time due diligence, periodic sample-based testing by auditors (“agreed upon procedures”), and certifications by executive managers — every one of them backward-looking, and every one of them out of date the moment it's signed. Collateral-integrity failures in recent years have shown what periodic sampling doesn't catch: fabricated or double-pledged collateral surfacing only after losses occur.
What CQR changes
On CQR-Invest®, the pool behind your notes is verified continuously:
From-source data. Performance flows directly from the originator's ERP, contract systems, and from the manufacturer’s (OEM) equipment telematics — not from spreadsheets prepared for reporting.
Immutably recorded. Every data point is committed to CQR-Chain®, creating a tamper-evident record linking contracts, payments, and physical assets.
Triangulated. Independent data sources are cross-checked against each other; anomalies and early-warning signals (underutilization, environmental precursors) surface before they become defaults.
Auditor-attestable. CQR-AUP™ reporting replaces periodic sampling with continuous attestation a Big Four firm can sign — and the issuer chooses the auditor, so there's no lock-in and no conflict.
What you see as an investor
Live, aggregate pool-level reporting: cash-flow performance against schedule, covenant status, collateral verification, and the early-warning indicators the triangulation model produces. Investors see the aggregate data, because verification doesn't require exposing the originator's per-asset commercial and technical data — the platform is designed so both sides keep what's theirs. And the originator, in their post-issuance role of “servicer” uses the early warning indicators to pre-empt performance issues, which in turn enhances the quality of the securities.
Without paying CQR-Invest®
We do not charge you to invest or hold the securities. Our fees are paid by the originator/issuer/servicer, for whom the fees of the service providers (the lawyers, the banks, the auditors, the trustees and us) are a small price to pay in comparison with the benefits of securitizing their cash flows. Your service providers (the processing bank(s), your wealth management platform providers, your financial advisors, etc.) will continue to charge you fees, as before.
Non-mortgage commercial asset-backed securities (ABS)
ABS are a cornerstone of institutional fixed-income portfolios, with around $4 trillion of annual global issuance (listed and unlisted) and $1.7 trillion in US listed securities outstanding.
These securities are backed with the cashflows received from services such as energy generation or equipment leasing. The underlying installations and equipment, with stable and predictable value, serve as collateral. That results in relatively low default risk compared with, for instance, mortgage-backed securities, where real-estate price swings can pose a significant risk.
Asset-backed securities are also generally considered a safer investment than private credit and corporate bonds, which are unsecured (i.e. do not have collateral) and fully rely on the issuer’s ability to generate sufficient cashflows from their business in the future, whereas the issuer of non-mortgage asset -backed securities, and hence the securities themselves, are typically insulated from the originator, and rely on the cashflows from a pool of contracts with several businesses and institutions, with collateral on the underlying equipment and installations.
widely accepted, and in need of verification
Historically, non-mortgage ABS have been created for large institutional investors, centered on sizeable portfolios of high-value assets in mature markets. Their reliability rests on well-defined characteristics and well-established reporting standards.
Today, that trust is eroding, revealing the need for more transparent verification. At the same time, many non-US and emerging markets lack the infrastructure that underpins that trust, leaving the ABS market largely inaccessible to issuers with pools in those other markets.
Cathmere’s proof-based verification platform
Cathmere replaces trust with verification through technology. Using AI, IoT and blockchain, the platform provides mathematical proof as it creates immutable links between contracts, payments and physical assets, drawing verified data directly from the source, and submits the data to triangulation and analysis in a continuous quantitative review.
for overseas and emerging markets
For originators with pools of contracted cashflows outside the mainstream markets, Cathmere’s platform bridges the trust gap, enabling originators to structure asset-backed securities that meet the standards of investors in advanced markets.
Moreover, through its platform, Cathmere provides institutional investors with investable instruments that allow them to participate in the (re-)financing of the trillions of dollars required for decarbonization and climate mitigation projects in emerging markets, such as solar and wind farms.
for retail investors
Cathmere has built an investment platform for retail investors and welcomes integration and collaboration with all leading wealth management platforms, which opens the ABS market to accredited retail investors.
for advanced and industrialized markets
Integration with manufacturers’ telematics platforms that cover equipment and power-plant components simplifies the refinancing of vendor leases and vendor-financed portfolios.
Recent irregularities in the US ABS market have shown how weak asset verification can compromise even the most mature systems. Cathmere’s architecture makes vulnerabilities such as fraudulent duplication virtually impossible.
Platform & Technology
More information about the platform, and the technology behind the platform can be found on the platform page of Cathmere Inc, the company who developed and operates the CQR platform.