SH Schweizer Hypotheken AG structures and places asset-backed and mortgage-backed securities for institutional originators and investors. This page describes the business model, the legal structure that governs every transaction, and the regulatory frameworks under which we operate.
SH operates a single, focused business: we are an arranger and structurer of securitisations backed by real assets and structured credit portfolios. We do not lend from our own balance sheet in significant size; we do not manage third-party funds. Every transaction is structured such that the cash flows move between the originator and institutional investors, intermediated by a bankruptcy-remote special purpose vehicle.
Our economics are transaction-based — arranger fees at closing, servicing fees over the life of the instrument, and, in some cases, a retained position in the equity tranche to align with investor outcomes.
We work within Swiss and EU regulatory frameworks across every transaction. We do not operate in lightly regulated jurisdictions; we do not structure around tax arbitrage; we do not serve retail.
We securitise mortgage and receivables portfolios from EUR 20 million upwards — balance sheet relief, regulatory capital release, and access to alternative funding beyond traditional lending.
Access to mortgage-backed and asset-backed securities with collateralised, predictable cash flows. Senior and junior tranches structured to individual risk-return mandates.
Bespoke transaction structures for complex asset classes — real estate, structured credit, operational assets. Optimisation of capital costs within applicable regulatory frameworks.
Conversion of illiquid real assets and receivables into tradable securities. Asset-Co / Fin-Co segregation, bondholder representation, security agents — bankruptcy-remote structures under LMA standards.
Senior and junior tranche issuance to institutional investors. End-to-end execution from initial structuring through documentation, rating agency engagement, and placement.
Advisory on Basel IV, Solvency II and FinSA capital implications. Balance sheet optimisation, refinancing architecture, collateral monitoring. Independent analysis — we recommend securitisation only when it is the right tool.
LMA-based loan agreements, prospectus documentation under FinSA Art. 52, STS-compliant EU securitisations. Full compliance with transparency and risk retention requirements.
NDA-based communication, SPV-protected anonymity, bilateral structures without public issuance for mandates requiring elevated confidentiality.
Every SH securitisation follows the same fundamental structure. The real asset remains with the client through an Asset-Co. A Fin-Co — a bankruptcy-remote SPV within the SH group — grants a loan to the Asset-Co and refinances through capital-market issuance. Security is held by a third-party agent on behalf of bondholders.
A special purpose entity owned by the client. Holds title to the real asset or receivables. Pledges mortgage certificates or equivalent security to the Fin-Co in exchange for the loan. Isolated from the client's operating business for bankruptcy remoteness.
An SPV within the SH group. Grants the loan to the Asset-Co, secured by the mortgage certificates. Issues senior and junior notes to fund the loan. Its sole activity is this single transaction — no other liabilities, no other business, legal protection against creditors of the wider SH group.
A third-party institution holding the collateral — mortgage certificates, assignment of loan receivables, pledge over transaction accounts — for the benefit of all bondholders. Enforces in case of default according to documentation.
Receives interest and principal payments from the Asset-Co via the Fin-Co, applies the contractual waterfall, and distributes to bondholders according to their tranche ranking. Third-party institution, independent from SH.
Monitors covenants, collects reporting data from the Asset-Co, produces investor reports, manages any amendments or waivers within the delegated authority of the documentation.
All Swiss-domiciled issuance vehicles and the contractual framework between parties operate under the Swiss Code of Obligations. Note terms, security documentation, and intercreditor arrangements reference the Swiss CO as governing law unless otherwise mandated by jurisdiction.
The Financial Services Act of 15 June 2018 governs investor protection and prospectus obligations in Switzerland. Public offerings and listings require prospectuses under Article 52. SH operates under the professional-investor exemptions where applicable, with full prospectus compliance when public placement is chosen.
For transactions placed with EU investors, the EU Securitisation Regulation 2017/2402 governs risk retention (Article 6), transparency (Article 7), due diligence (Article 5), and — where applicable — the Simple, Transparent and Standardised (STS) label. SH maintains full compliance across all EU-placed issuances.
The Swiss Anti-Money Laundering Act applies to all originator relationships. KYC procedures include beneficial ownership verification, source of funds analysis, and ongoing monitoring. Records retained per statutory requirements.