CARA7
CARA7 issues and services asset-backed notes. Originators finance their portfolios. Investors hold notes that pay interest and principal directly to their account. Everything between the two, the calculation agency, the cash management, the register and the reporting, runs on the CARA7 platform.
What CARA7 does
Securitization works. What does not work is the machinery around it. A monthly payment date mobilises a calculation agent, a paying agent, an account bank, a custodian and a management company. Each takes a fee, each takes days, and the investor sees the result in a report published three weeks after the period it describes.
CARA7 replaces that machinery. The priority of payments is executed by the platform: it computes each rank from the servicer's collections, settles every class, and pays each holder in the same operation. Positions, cash flows and portfolio data are available to holders as they happen.
| Conventional deal | CARA7 | |
|---|---|---|
| Waterfall computation | Calculation agent, spreadsheet | Executed by the platform, per rank, to the cent |
| Payment to holders | Paying agent, through the clearing chain | Direct to the holder's account, same operation |
| Cash idle between collection and payment | Weeks | Hours |
| Investor reporting | Monthly, in arrears | Continuous, per period |
| Independent verification | Annual audit | Every period, published |
| Loan-level data | Data room, on request | Recorded per asset, available to entitled parties |
Who it is for
Investors buy notes of a defined class, with a coupon, a rank and a stated credit enhancement. Interest and principal arrive without a claim, a form or a custodian instruction. See for investors.
Originators finance a portfolio without building a securitization back office. CARA7 operates the calculation agency, the cash management and the reporting for the life of the transaction. See for originators.
The programme
The current programme finances French electric vehicle leases. Series 1 is outstanding and amortizing. Series 2 is open for subscription.
| Series 1 | Series 2 | |
|---|---|---|
| Issued | 215,000 | 21,500 |
| Portfolio | 275,500 | 27,550 |
| Classes | A, B, C | A, B, C |
| Status | Amortizing, Class A factor 70.5477% | Open for subscription |
Three payment dates have been made on Series 1. Every coupon was paid in full, no class recorded a shortfall, the cash reserve was released and replenished in each period, and Class A has amortized 29.45% of its principal. Terms and performance: the programme.
What makes it different
Payment is automatic. On each payment date the platform pays every holder of record. No claim, no instruction, no unclaimed balances sitting in an omnibus account. A holder who acquires notes mid-period receives the coupon for the days they held them, computed to the day and settled at the next payment date.
Verification is continuous. An independent agency layer recomputes each period from the portfolio data and reconciles it against what was paid. The most recent reconciliation matched every line of the waterfall to one ten-millionth of a euro. Reports are published with each period.
The collateral is documented per asset. Every vehicle, battery and obligor in the portfolio carries a record with a content hash and a timestamp. Battery state of health is measured and recorded, which is what supports residual value in an electric vehicle portfolio. Aggregates are public; loan-level detail is encrypted and released to entitled parties.
Where to start
For investors · For originators · The programme · Status and legal