What are GAM certificates, and why are they bought and sold?

Why are GAM certificates bought? They are an opportunity to invest in financial assets backed by credit commitments, which can help companies diversify their portfolios and manage liquidity, at a competitive return.

Who buys them? Investment companies and holdings allocating to financial assets suited to their horizon and risk appetite; companies with surplus liquidity putting idle funds to work; companies with a short or negative cash cycle managing cash; and financial institutions and insurers diversifying their portfolios and managing yield and maturity.

Why are they sold? To its holder a GAM certificate is a financial asset with a fixed maturity. When a company needs liquidity before maturity, it can sell the certificates for cash and return those funds to its operating cycle.

Who sells them? Manufacturers, traders and service companies that received GAM certificates for goods or services and need cash for working capital, settling obligations or financing current operations.

Why non-exchange GAM certificates? Faster issuance by the bank without the capital-market registration process; faster discounting without waiting for admission to the exchange board; and more agility in financing.

What does KaraFi do? A non-exchange GAM certificate has no central marketplace in which to find a counterparty. KaraFi is that marketplace: an integrated platform that brings buyers and sellers together, raising the liquidity of financial assets and developing supply-chain financing.