Claim Pricing
There is no standardized convention for pricing claims or centralized resource for quoting market prices. So how can you know the market value of your claim? Below are the important factors to consider to confidently price a claim.
All claims are unique. All prices are semi-custom.
Just like any other asset, the fair market price of any claim is equal to the highest price a buyer will pay and the lowest price the seller will accept.
To support your independent analysis and provide transparency into Xclaim’s quoted pricing we breakdown our methodology below.
Xclaim Pricing Model
- On a real-time basis we synthesize the non-public pricing indicators received from:
- Buyers (bid price)
- Sellers (ask price)
- Confirmed and Closed Trade Prices
- Our pricing does not reflect a “bid/ask spread” but rather the actual prices that buyers are bidding and sellers are accepting in the market.
- Our quoted "up to" prices reflect the highest verifiable price in the market. Actual bids may be higher or lower based on the unique characteristics of a claim, as described below.
Pricing Adjustments
The highest prices are generally reserved for claims that meet the following criteria:
- Larger claims (generally greater than $1 million) typically receive pricing in line with our published “up to” market price. Smaller claims should be prepared to accept a slight discount. This is due to two primary reasons:
- First, transaction costs do not scale linearly - the cost to purchase a $100,000 claim is similar to the cost to purchase a $1,000,000 claim.
- Second, there are fewer buyers interested in acquiring smaller claims, resulting in less competition and more negotiating leverage for those buyers that are active.
- Claims that are scheduled, stipulated, allowed and/or undisputed — without impairments such as clawback, setoff or litigation risks.
- Claims held by sellers that are domiciled in countries where a buyers’ ability to own, defend, or collect payment from a seller is supported by law.
- Claims held by established entities and sellers with a strong balance sheet, factors that reduce the buyer’s counterparty risk.
Additional Resources
- External: Guide to Bankruptcy Claims Trading
- External: Bankruptcy Clawbacks FAQ
- Contact us at support@x-claim.com
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