Investment Education PLC

Securitisation Overview
Last Updated - 18 July 2008
Todays Date -
Return to CoursePrint course
Duration 1 day
Available as an in-house course


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.

No knowledge of Securitisation is assumed but delegates should have a basic knowledge of securities and finance.




-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


-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