AAMC Enters into Forward Sale Contracts to Sell Alternative Credit Products

Rhea-AI Summary

Altisource Asset Management Corporation (AAMC) has entered into forward contracts with two major U.S. institutional counterparties, managing over $50 billion and $15 billion in assets. This strategic partnership highlights AAMC's unique loan origination model, which caters to the specific criteria of asset managers. CEO Jason Kopcak expressed that gaining trust from these fixed-income counterparties reinforces the value of their business model. AAMC is also in discussions with five additional counterparties for similar contracts, indicating a positive trend in the credit market.

Positive

• Established forward contracts with two large institutional counterparties managing over $50 billion and $15 billion.
• Partnerships reinforce AAMC's unique loan origination model, enhancing its competitive position.
• Indications of renewed interest in the alternative credit market with discussions ongoing with five more counterparties.

Negative

• None.

CHRISTIANSTED, U.S. Virgin Islands--(BUSINESS WIRE)-- Altisource Asset Management Corporation (“AAMC” or the “Company”) (NYSE: AAMC) announces that it has entered into forward contracts to sell alternative credit products to two of the US’s largest institutional counterparties that manage insurance and credit money assets. The organizations have over $50 billion and $15 billion in assets under management.

Establishing partnerships with blue chip asset managers affirms AAMC’s distinctive loan origination template: AAMC’s strategy leverages growing relationships with large multi-asset managers to originate loans based on the specific loan criteria of individual asset managers, as opposed to a one-size-fits-all securitization-based model.

“These counterparties would not have entered into this arrangement if they did not value our business model,” said Jason Kopcak, CEO of AAMC. “Gaining the trust and business of the largest fixed income counterparties in the Private Credit/Alternative Asset space within our first few months of alternative lending operations is a testament to the deep experience of our team.”

Kopcak reports that AAMC is in process with five additional counterparties regarding similar forward contracts.

“This is exciting for AAMC,” said Kopcak, “these partnerships underscore the value of our model, suggest that the credit market is healing and demonstrate renewed interest in this asset class.”

About AAMC

AAMC is a private credit provider that originates alternative assets to provide liquidity and capital to underserved markets. We also continue to assess opportunities that could potentially be of long-term benefit to shareholders. Additional information is available at www.altisourceamc.com.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections, anticipations, and assumptions. These statements may be identified by words such as “anticipate,” “intend,” “expect,” “may,” “could,” “should,” “would,” “plan,” “estimate,” “target,” “seek,” “believe” and other expressions or words of similar meaning. We caution that forward-looking statements are qualified by the existence of certain risks and uncertainties that could cause actual results and events to differ materially from what is contemplated by the forward-looking statements.

The statements made in this press release are current as of the date of this press release only. The Company undertakes no obligation to publicly update or revise any forward-looking statements or any other information contained herein, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230131005367/en/

Investor Relations

T: +1-704-275-9113

E: IR@AltisourceAMC.com

Twitter: @altisourceamc

Source: Altisource Asset Management Corporation

FAQ

What recent contracts has AAMC entered into?

AAMC has entered into forward contracts to sell alternative credit products to two major U.S. institutional counterparties.

What is the significance of AAMC's partnerships?

The partnerships validate AAMC's unique loan origination strategy, attracting large asset managers.

How much assets do the counterparties manage?

The counterparties collectively manage over $65 billion in assets.

What does AAMC's business model focus on?

AAMC's business model focuses on originating loans based on specific criteria for individual asset managers.

Is AAMC discussing further partnerships?

Yes, AAMC is in talks with five additional counterparties for similar forward contracts.