L.C.R.P. is a company, jointly owned by Bank Leumi le-Israel (51%) and the Investment banker Menahem Weber (49%), established in 2001 to design and distribute credit derivative financial instruments.
L.C.R.P. is the leading body today in the issuing of short-term debt investments. The company is a market leader in issuing commercial paper in terms of the amount of capital raised, the number of issues, its market ties and its ability to distribute to institutional investors in the capital market. The firm's senior staff includes seasoned executives with experience in banking, investments and financial analysis.
The main financial instruments in which the company specializes:
1. Commercial paper: Commercial paper is an alternative financial instrument that gives the issuing company a substitute for short-term bank loans. Firms that have a quality business/financial presence, raise working capital using commercial paper, directly from the institutional market. Investors use the instrument as a short-term investment product, an alternative to bank term deposits and short-term government debt. As of August 2005, the company's issues totaled more than NIS 3.7 billion.
2. Securitization: Asset-backed Securities are short- or long-term debentures secured by predetermined cash flows, which are expected to derive from a defined asset. The essence of securitization is the pooling of expected flows, “packaging” together, their derecognition from the rest of the activities of the originator and their conversion to a security. (The assets backing the debentures must be characterized by a stable and foreseeable cash flow.) However, the essential credit risk, remains with the Originator and is not transferred. Securitization is effected using a number of financial instruments, such as CDO, which may allow “removal” of the credit risk from the books of the Originator, without severing the day-to-day Originator-customer relations.
3. Credit derivatives: The sale of loans from the banking system to the institutional market. The sale can be by means of a direct assignment/ participation or by way of the sale of participations. The banking system, which specializes in financing the setup stage of long-term projects, becomes interested -- when these projects move on to the operating stage -- in the participation of the institutional market in financing the project, thus creating a wide credit base in the market. L.C.R.P. supports this strategic process.
The company’s senior officials:
- Eric Siekierski Konigstein - Head of Commercial Paper and Distribution eric@lcrp.co.il
- Orian Dagan Margalit - Assistant to the Managing Director and Analyst orian@lcrp.co.il
- Orit Levy Zrihen
