CMFF is a lending platform which displays on its internet site information in relation to a specific credit risk. The lenders on the platform will determine whether or not to accept the respective credit risks and what the terms and conditions are under which such credit risk is acceptable to them. The borrowers have the choice whether they accept such offer by the lenders. Thereby, demand and supply determine the final “price”.

The transaction costs are lower and the returns will be higher than those of comparable credit linked products; the parties will have full insight in all financial information relevant for the assessment of the underlying credit risk through the virtual data room of CMFF.

The platform will initially be operated in each territory domestically between local lenders and borrowers. This may be expanded over time when individual markets show sufficient levels of liquidity and transaction volume. In addition, further products in addition to loan notes will be added to CMFF’s offering. Selection criteria for lenders to choose offers from include industries, collateral type and rating criteria. In Germany, the model is used by K-Bonds AG for its Schuldschein programme with which real estate secured receivables are placed with institutional investors. Since its inception in 2012 until the end of 2015 nearly 300 million Euro of risks were sucessfully placed.