The Debt Exchange, Inc. (also known as DebtX), is an American specialty finance company. It is one of the world's largest
loan sale advisers for the sale of commercial, consumer and specialty finance
debt.
History
Founded in 2000, DebtX began by selling loans in an
online auction format. A dedicated online marketplace is operated for this purpose. Banks use the platform to unload low-performing loans or to trim loans prior to an acquisition.
Since its founding, DebtX has expanded to offer other products and services including loan valuation, analytics and
CECL solutions as well as web-based deal management platforms for use by syndication, agency and loan sale professionals. According to its website, DebtX prices nearly $1 trillion in loans per month.
In 2006 and 2009, The Debt Exchange was awarded patent numbers 7,035,820 and 7,584,139, respectively, by the
United States Patent and Trademark Office for its online loan sale and debt trading exchange system. In 2014, DebtX was awarded a third U.S. Patent No. 8,639,614 for its DXSyndicate product.
Aside from financial institutions, the U.S. government also uses DebtX. Throughout the
financial crisis of 2007–2009, the U.S.
Federal Deposit Insurance Corporation (FDIC) used DebtX as one of the primary companies to sell loans from
failed banks
A bank failure occurs when a bank is unable to meet its obligations to its depositors or other creditors because it has become insolvent or too illiquid to meet its liabilities. A bank usually fails economically when the market value of its assets ...
. In July 2020, assets seized by the government from drug traffickers worth $366 million were auctioned.
By 2010, Debt Exchange had expanded its operations in Latin America.
The Debt Exchange is based in the
Financial District of
Boston, Massachusetts, with additional U.S. offices in New York City, Atlanta, and San Francisco, and European offices in Germany, Spain, Italy, and the United Kingdom.
[https://www.debtx.com/corp/contact-us/] It previously also had an office in McLean, Virginia.
See also
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Loan
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Loan sale
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Secondary market
The secondary market, also called the aftermarket and follow on public offering, is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold. The initial sale of the s ...
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Market liquidity
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Capital market
A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold, in contrast to a money market where short-term debt is bought and sold. Capital markets channel the wealth of savers t ...
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Financial technology
References
{{reflist
Online auction websites of the United States
Companies based in Boston
Financial services companies established in 1999
Financial technology
1999 establishments in Massachusetts