The entire securitization market was built on similar concepts where financial assets were put into a bankruptcy remote special purpose vehicle and the assets were sold rather than financed. In a bankruptcy, the securitization owns the financial assets so it is able to obtain lower costs of financing by de-coupling the company risk from the asset risk.

In CAC debt, there will be varying levels of reliance on the company providing the product or service. The less reliance there is, the lower the required return should be (all things being equal). Debt markets are tightening up due to bank liquidity issues, recession fears and CRE exposures but there should be a "half way" step between massively dilutive growth equity and something that is more debt like. if it is scalable and can be supported with a third party "servicer" or services who could step in to ensure ongoing payment in a closure or failure of the company getting the capital, it would really open this market up.

I ran securitization for many years at a major money center bank and have significant experience funding first time issuers, esoteric assets and providing creating new solutions. I'm open to exploring this further as I believe hedge funds would be very interested in a product that would allow them to tap into a new channel with upside returns compared to ABS and fixed income.

@Kelli Fontaine @Garrett Dunham @Jeremy Burton