Background

Securitisation is an increasingly common way of raising cost effective finance for a wide range of different assets that were previously difficult to finance. Since the process, parties involved and documentation as well as pricing can appear mysterious to the uninitiated, Investment Education plc is providing a one day course that gives a good basic overview of the whole Securitisation process including aspects of pricing, documentation processes, timing, etc.

Delegates

Background

-Capital provision for lending.
-BIS banking ratios
-Cost of capital and fee structures

Rationale for securitisation


Process of securitisation

-Identify investor market
-Identify asset type
-Create issuing vehicle


Structure of securitised issues

-Special purpose vehicle
-Stock market requirements
-Capital required and treatment
-Assets & Liabilities
-Perfect security linkage between assets and liabilities
-Ensure that assets no longer impose any obligations on original owner


Documentation

-Corporate documents : Including country of incorporation, ownership, shareholder rights
-Security documents: trust deed if applicable, linkage between assets and liabilities, custody, substitution
-Issue documents and prospectus etc


Why sell? Why buy?

-The vendor's position and considerations
-The investor's position and considerations


Benefits and disadvantages of securitisation


Types of asset to securitise

-General characteristics
-Specific examples of loans, corporations, industries
-MBS, ABS eg credit card, or consumer receivables etc


Other types of off-balance sheet finance

-Principal differences between securitisation and other approaches
-Leasing, Hire purchase
-Joint ventures
-Project finance
-Structured finance
-SPVs