Investment solutions

Liquidity solutions

With the recent rise in interest rates, institutional investors are placing greater emphasis on liquidity. They are looking for the ability to grow, adjust or rebalance their mortgage investments quickly and cost-effectively. While Dutch residential mortgages are seen as offering fair and consistent returns with limited credit risk, they are also perceived as illiquid. However, mortgages are a relatively easy asset class to trade due to their strong credit profile and homogeneity. In response to growing investor demand, DMPM offers proven liquidity solutions to seamlessly facilitate portfolio transactions.

Highly tradable asset class 

It is no secret that Dutch residential mortgages have a remarkably strong credit profile. Contributing factors include long fixed-rate periods, regulatory maximum loan-to-income ratios and loan-to-value calculations at origination, full document underwriting and social benefits in case of unemployment. 

If lenders adhere to a consistent, well-monitored underwriting framework, mortgages can be considered a uniform asset class. Given the homogeneity and high credit quality of mortgage portfolios, they serve as ideal collateral for accessing temporary liquidity or funding. Especially if they are issued under a single label and supported by a similar underwriting process. 

Liquidity within our collective investment platform 

Through our collective investment platform, we offer investors the opportunity to fund their mortgage portfolios externally or use them as collateral for a loan. As originator, we provide support to facilitate securitisation and retained transactions efficiently, ensuring continuity and security. 

Would you like to know more about how DMPM can assist investors with low-effort portfolio transactions? Arno Dries, Manager Investor Relations, will be happy to provide further insight into the possibilities.

‘’We had the capacity to invest in more mortgages, but we lacked liquidity. With the help of DMPM, we set up a programme and structure and successfully completed three securitisation transactions using NHG mortgages as collateral. Each time the process was quick and smooth: DMPM fulfilled both an advisory and operational role, taking all the administration out of our hands.’’