Asset Securitisation

Asset securitisation was at the heart of the financial crisis but most losses were due to just one sector, in one country – US sub-prime mortgages. Elsewhere, securitisation continued its roles in providing an alternative funding source for issuers and a menu of risk/return for investors – from AAA that performs as AAA to ‘Equity’ – across an ever-widening range of asset types.

This course explains how securitisation is done, why it is done – from issuers’ and investors’ perspectives, the various risks involved, how – and to what extent – they are mitigated. It incorporates case studies from each of the major asset sectors – residential mortgages, auto loans, CLOs, commercial MBS, etc.

Objectives

By the end of the course, the participant will be able to:

• Explain the features and characteristics of Asset Backed Securities (ABS)
• Know the main applications of ABS
• Identify the main risks
• Explain the basics of pricing
• Understand the main terminology used in the marketplace
• Be familiar with the different structures in the market

Course Content

• How securitisation is done
• The role of the SPV/SPE
• Cost-Benefit Analysis
• The various parties involved and their roles
• How the rating agencies effectively determine the ‘tranching’
• The attractions for issuers
• The various risks and how they are managed
• Pricing and Hedging Asset Backed Securities
• Project Finance: Asset-Backed Financing Applications
• The pros and cons for investors
• Variations and Wider Applications of the ABS Techniques
• How and why structures vary

Who should attend:

The seminar is of relevance to both originators and investors in asset-backed securities:

• Corporate treasurers and CFOs
• Risk Managers
• Compliance Officers
• Investment officers
• Investment advisers
• Plan sponsors
• Bank officers
• Securities analysts
• other individuals whose professional future may be enhanced by an understanding of the asset securitization technique.