How it works

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The BlinkS platform will be not only a completely new instrument, but also the state of the art as regards security, transparency and ease of use

Managed portfolios

Initially, BlinkS will accept only NPL portfolios; subsequently it will expand its activities to include UTPs as well as trade receivables. As far as coverage is concerned, it will be possible to trade both secured and unsecured positions on BlinkS.

BlinkS’s primary target is management of portfolios of different sizes –small, medium and large – clustered by asset class, with a view to achieving greater fluidity and aligning the market more closely with the specializations of individual investors.

Steps

Simple straightforward procedures for operators using BlinkS.

Selling

When a seller decides to put their non-performing loan positions on the market through BlinkS, they fill out a standard data tape provided by the platform, setting out the information on their positions. The seller may sell their exposures in clustered portfolios or on a single-name basis. Once the data tape has been uploaded, the BlinkS platform will run the necessary checks to assess data quality and assign a rating to the data tape, offering the seller data remediation services of the highest standard. The seller will have access to a simulation area where they can calculate the value of their assets using parametric mathematical models. Once the seller is satisfied with the quality of the data and the consequent expected price, they put the portfolio/positions up for sale, either by auction, on a “buy-now” basis or through a hybrid solution (auction plus buy-now option) .

Purchasing

The potential buyer accessing BlinkS can analyze the data uploaded to the platform, view the PDF documents associated with the positions and run their own assessments with the help of a simulator. Once they have established their price range, they can take part in the auction, which will close after a specified cut-off time. Alternatively, if the seller is agreeable, the buyer may make an offer to purchase the loan immediately, using the buy-now option. If the buy-now option is not available, the best bid will acquire the right to the loan. While the bid is a binding commitment, the actual transaction will take place off the BlinkS platform, as mutually arranged.