DelphX Capital Markets and BondIT to Co-Market AI Downgrade Prediction with Credit Rating Securities Protection
DelphX is also exploring broader access through a potential fund or exchange-traded product.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
DelphX Capital Markets (DPXCF) entered a non-binding memorandum of understanding with BondIT USA to jointly market their credit-risk products.
The arrangement pairs BondIT's Scorable, an AI model designed to predict corporate bond rating changes, with DelphX's Credit Rating Securities (CRS), which pay fixed cash when a referenced bond is downgraded. The firms plan to target institutional holders of agency-rated bonds, including insurers, asset managers, pensions, banks and credit funds. DelphX has broadened CRS beyond its original insurer base and is in active discussions with institutional investors evaluating the instruments.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate point. Forward-looking: it has not happened yet and may not happen.CRS market expansion extends beyond the original insurer base to the full institutional market.
- Minor point. Forward-looking: it has not happened yet and may not happen.DelphX is exploring broader CRS access through a potential fund or exchange-traded product.
Negative
- Moderate pointThe BondIT co-marketing memorandum is non-binding, rather than a binding agreement.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Arrangement pairs BondIT's Scorable rating-migration model with DelphX's CRS instruments as investor demand to trade AI-related credit risk accelerates
Toronto, Ontario and Miami, Florida--(Newsfile Corp. - November 12, 2026) - DelphX Capital Markets Inc. (TSXV: DELX) ("DelphX" or the "Company") today announced it has entered into a non-binding memorandum of understanding with BondIT USA Inc. ("BondIT") to co-market the two firms' complementary products: BondIT's Scorable, an AI-driven model that predicts corporate bond rating migrations, and DelphX's Credit Rating Securities ("CRS"), the Company's proprietary instruments that pay fixed cash when a referenced bond is downgraded. The shared proposition is simple: Scorable flags the migration, and CRS protects against it. Predict, then protect.
The arrangement comes as institutional demand to hedge and trade credit-rating risk across AI-exposed corporate debt has risen sharply, reflected in a wave of new credit products from major institutions over recent months.
CRS consists of a Collateralized Put Obligation and a matched Collateralized Reference Note, issued as Section 4(a)(2) private placements through the Company's Quantem platform, with U.S. Bank as custodian and calculation agent. The holder receives a fixed cash payout, fully collateralized in U.S. Treasuries, when an agency downgrades the referenced bond. Unlike credit default swaps, which pay on default, CRS pays on the rating migration itself, the event that drives the capital and mark-to-market impact for bondholders.
Scorable, developed by BondIT, applies machine learning to forecast rating migrations across the corporate bond universe, giving investors an early read on which names are most likely to be downgraded.
Under the MOU, the firms will jointly market to institutional holders of agency-rated bonds, including insurers, asset managers, pensions, banks and credit funds. The announcement follows DelphX's broadening of CRS beyond its original insurer base to the full institutional market, both for investors seeking to hedge downgrade risk and for those seeking to take a view on it. The Company is in active discussions with institutional investors evaluating CRS, and is exploring structures to broaden access further, including a potential fund or exchange-traded product.
"The market has woken up to credit-rating risk, and CRS is built to pay directly on the downgrade, the event that actually drives the loss," said Patrick Wood, President and Chief Executive Officer of DelphX. "Pairing it with BondIT's prediction engine gives investors the full path, from spotting the migration to protecting against it. We believe the timing is strong and the opportunity ahead is significant."
"We're very excited to partner our AI-based credit risk assessment solution with such an innovative product and think that utilizing both CRS and Scorable provides an ideal solution for ratings migration. Scorable has been proven to significantly outperform in forward looking ratings migration and CRS is a perfect synergy from a markets instrument perspective," said Andrew Merrill, Head of Relationship Management at BondIT.
About DelphX Capital Markets Inc.
DelphX Capital Markets Inc. (TSXV: DELX) is a structured finance company that develops proprietary securities addressing unmet needs in the credit markets. Its Credit Rating Securities provide funded, collateralized protection against bond rating migration, issued through the Company's Quantem platform. DelphX is headquartered in Miami and Toronto. For more information, visit www.delphx.com.
About BondIT USA Inc.
BondIT enables institutions to deliver personalized fixed income solutions at scale through its proprietary technology. Established in 2019, BondIT uses AI and other advanced technologies to advance the needs of fixed income investors. BondIT is headquartered in New York, with offices in Israel and Berlin.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of applicable securities laws, including statements regarding the co-marketing arrangement with BondIT, the anticipated benefits of combining Scorable and CRS, the Company's commercialization and go-to-market plans, discussions with institutional investors, and the potential development of a fund or exchange-traded product. The memorandum of understanding is non-binding (other than specified provisions), and there is no assurance that it will result in any definitive agreement, transaction or revenue. Forward-looking statements are based on assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. The Company undertakes no obligation to update these statements except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact: Patrick Wood, President & CEO, DelphX Capital Markets Inc. - patrick.wood@delphx.com · (305) 528-5648
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/323659
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What does the DelphX and BondIT co-marketing arrangement cover?
The non-binding memorandum of understanding covers joint marketing of BondIT's Scorable and DelphX's CRS to institutional bondholders. Scorable is designed to forecast rating changes, while CRS provides a fixed cash payout when an agency downgrades the referenced bond.
How are DelphX Credit Rating Securities issued and collateralized?
CRS instruments are issued as Section 4(a)(2) private placements through DelphX's Quantem platform, with U.S. Bank serving as custodian and calculation agent. They consist of a Collateralized Put Obligation and a matched Collateralized Reference Note. The fixed cash payout on a referenced bond's downgrade is fully collateralized in U.S. Treasuries.