Infrastructure for institutional risk transfer

The yield is there. The currency is in the way.

Three-month sovereign bills in the emerging markets pay three times what a Treasury bill pays, and a conventional hedge gives most of it back. Tranchco separates the yield from a bounded share of the currency risk and places each with the balance sheet built to hold it.

How it worksRead our research
NINETY DAYS, TWO BILLS Three-month treasury-bill yield, percent per annum United States4.25 Pakistan11.99 US: 3-month Treasury bill, 9 October 2026 (US Treasury daily yield curve). Pakistan: 3-month T-bill cut-off yield, SBP auction of 30 September 2026. Same instrument, same tenor. Refreshed at publication.
$14.3T
Dollar credit to non-banks outside the United States, end-2025
BIS global liquidity indicators
97.7%
Of all PKR depreciation, 2000–2025, that occurred inside 30-day windows
State Bank of Pakistan daily USD/PKR, 2000–2025 · method in The Calm Regime
3months
Tenor of the claims in the structure: short-dated sovereign bills and bank deposits
Tranchco PARK
The market-design problem

One return. Different risks. Different natural holders.

Tranchco separates risks that conventional instruments bundle together and allocates them to the institutions positioned to hold them.

I

Currency

The tail that forwards price continuously and currencies deliver in steps.
SharedA domestic institution elects to hold a bounded portion of the currency loss, for a premium, in a loss order agreed before entry. The engine parks exposure at pre-committed thresholds.
II

Asset risk

The obligor behind the claim.
ConstrainedEligible assets are limited to short-dated sovereign bills and bank deposits. Asset, counterparty and currency risks remain separately identified rather than collapsed into a single exposure.
III

Counterparty risk

The balance sheets that stand between the investor and the asset.
IsolatedA bankruptcy-remote onshore SPV, regulated custody and settlement, and an independent administrator who holds none of the risk and reproduces every NAV.
Inside Tranchco PARK

Two sides of the same risk.

Global investors seek the yield without the full currency tail. A top-tier local regulated asset manager already holds local sovereign assets and elects to take a defined share of FX risk for a premium.

The senior side pays part of its carry to the junior side in exchange for the junior taking the agreed first-loss layer. A rules-based structure monitors risk daily and parks exposure when predefined thresholds are reached.

How it works
ONE STRUCTURE, TWO SIDES Global capital and a top-tier local regulated asset manager enter the same structure; each holds what it is positioned to hold GLOBAL INVESTOR USD capital · seeks the yield, not the tail TOP-TIER LOCAL REGULATED AMC local sovereign bills · elects a bounded share of the tail senior pays a premium ⇄ junior accepts a bounded first loss TRANCHCO · PARK separates sovereign yield from a defined share of FX risk SENIOR · USD EM sovereign yield bounded FX exposure JUNIOR · LOCAL CURRENCY local sovereign yield plus an FX-risk premium, held by election
Who it is for

A market needs both sides, and the institutions between them.

Global allocators

Short-duration emerging-market sovereign yield, with currency exposure bounded.

Treasuries, reserve managers, family offices and funds subscribe in dollars and hold the senior claim.

Discuss an allocation
Local institutions

A premium for a defined share of FX risk, in a market you know.

Regulated asset managers in each market hold the junior layer in their own currency, by election.

Explore a market partnership
Banks & infrastructure

Custody, settlement, conversion and distribution for a new institutional market.

Banking rails, regulated conversion channels and custody in each market the structure reaches.

Discuss institutional rails
Research

The research behind the market.

Our work starts with a simple question: why does emerging-market currency risk have to be bought and sold as one indivisible exposure?

I · THE MECHANISM
The Calm Regime
Making emerging-market sovereign yield institutionally ownable
Emerging-market currencies hold, drift and then adjust in short, violent steps, while forward protection is priced as if the move were continuous. The paper sets out the two-tranche structure and the engine that parks exposure at pre-committed thresholds.
July 2026On request →
IV · THE ARCHITECTURE
In God We Trust. All Others Post Collateral.
The collateral stays home. The claim travels.
Four things stay home for a Pakistani bill to remain what it is: the bill, the rupee, convertibility and the local share of currency loss. The paper asks what a dollar claim built on nationally held collateral would need to become usable collateral itself.
October 2026PublicRead online
All research
Company

Decades spent on both sides of the market.

Bank treasury and sovereign issuance on one side; institutional emerging-market debt on the other; market infrastructure in between.

Leadership
Omer Ehtisham · Founder & CEO

Inventor of the PARK mechanism. Thirty years in global treasury, fintech and capital markets: led the IILM’s global sukuk issuance programme, delivering $3.1 billion, and earlier served as Treasurer of JS Bank and Head of Fixed Income at Crédit Agricole. Economist and historian, Brown University.

Zulfiqar (“Asim”) Ali · Co-Founder & Chief Investment Officer

More than thirty years in emerging-market fixed income and among the early pioneers of the institutional asset class. Most recently managed the Latin American component of PGIM Fixed Income’s $50 billion emerging-markets debt platform; earlier built Fort Washington’s emerging-markets debt business from a $100 million seed to $2 billion, ranked in the top 5% by eVestment. MBA, Saïd Business School, Oxford; BA, Brown University.

Meet the team