Securitisation

Securitisation - Asset Securitisation Dr Manoj Anand...

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Asset Securitisation Dr Manoj Anand
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Characteristics of Securitisation Legal true sale of assets to an SPV with narrowly defined purposes and activities Issuance of securities by the SPV to the investors collateralized by the underlying assets Reliance by the investors on the performance of assets for repayment Rather than the credit of their originator (Seller) Or the Issuer (the SPV)
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Characteristics of Securitisation “Bankruptcy Remoteness” from the originator Administration of the assets, including continuation of relationships with obligers Support for timely interest and principal repayments in the form of suitable credit enhancements Ancillary facilities to cover interest rate/forex risk, guarantees Formal rating from one or more rating agencies
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Securitisation Transaction Originator or Sponsor (initial owner of the assets), who has loan agreement with the borrower (Obligors) SPV – Issuer of debt instrument Investment Bankers – Structuring the transaction
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This note was uploaded on 09/16/2011 for the course F 112 taught by Professor Ans during the Spring '11 term at IIM Bangalore.

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Securitisation - Asset Securitisation Dr Manoj Anand...

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