The Debt Exchange (also known as "DebtX") is one of the world's largest loan sale advisors for the sale of commercial, consumer and specialty finance debt. The company is engaged by commercial banks, insurance companies, investment banks, government agencies and other institutions.
The Debt Exchange is based in the Financial District in Boston, Massachusetts with additional U.S. offices in New York City, Atlanta, Virginia, San Francisco, and international offices in Germany, Spain, and the United Kingdom. DebtX was founded in 1999 and in 2000 began selling loans in an online auction format. In 2006, The Debt Exchange was awarded patent number 7,035,820 by the United States Patent and Trademark Office for its online loan sale and debt trading exchange system.
Since its founding, DebtX has expanded to offer other products and services including loan valuation and analytics as well as Web-based deal management platforms for use by syndication, agency and loan sale professionals. Throughout the Financial Crisis of 2007–2009, the U.S. Federal Deposit Insurance Corporation (FDIC) used DebtX as one of the primary companies to sell loans from failed banks.[1]
The DebtX loan sale platform includes a virtual data room, a customer relationship management system and online auction technology. In preparation for each sale, attorneys review and arrange the loan documents to facilitate bidder due diligence. [2]
Many loan exchange web sites have emerged since the financial crisis. Some sites require exclusive contractual relationships with the exchange operator and others are a more open exchange system which enables buyers and sellers to connect with each other outside of the exchange, similar to how a real estate multiple listing service operates. DebtX offers a loan sale process in which bidders must demonstrate their qualifications and sign a confidentiality agreement prior to participating in due diligence or bidding.