Securitisation Regulation and Securitise: Difference between pages
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'' | ''Assets - tradable securities''. | ||
To convert non-tradable assets into tradable securities. | |||
For example turning non-tradable assets, like residential mortgage loans, into tradable assets (such as mortgage-backed securities). | |||
This is often undertaken through a securitisation special purpose vehicle. | |||
The credit risk of the assets is divided into tranches, and payments to the investors are dependent on the performance of the assets. | |||
When a special purpose vehicle is used, the assets are transferred to the special purpose vehicle, which then issues securities. | |||
Non-performance of underlying assets is a key risk for investors, and was one of the triggers for the Global Financial Crisis (GFC). | |||
:<span style="color:#4B0082">'''''Originators & Sponsors in securitisation'''''</span> | |||
:"For the purposes of the Securitisation Regulation, the Originator of an asset is either a party that was directly or indirectly involved in the original creation of the asset, or acquired the asset for its own account and then securitised it. | |||
:... the Sponsor of a securitisation is a party that sets up the securitisation and manages it, but does not securitise its own assets." | |||
:''Originator - Sponsor - the Treasurer's Wiki.'' | |||
== See also == | == See also == | ||
* [[ | * [[Collateral]] | ||
* [[ | * [[Collateralise]] | ||
* [[Covered bond]] | * [[Covered bond]] | ||
* [[ | * [[GFC]] | ||
* [[ | * [[Loan]] | ||
* [[Mortgage]] | |||
* [[Mortgage-backed securities]] (MBS) | |||
* [[Originator]] | * [[Originator]] | ||
* [[ | * [[Secured]] | ||
* [[ | * [[Securitisation ]] | ||
* [[Securitisation]] | * [[Securitisation Regulation]] | ||
* [[Securitisation special purpose vehicle]] | * [[Securitisation special purpose vehicle]] | ||
* [[Securitisation swap]] | * [[Securitisation swap]] | ||
* [[Security]] | * [[Security]] | ||
* [[Significant Risk Transfer]] | * [[Significant Risk Transfer]] | ||
* [[Sponsor]] | * [[Sponsor]] | ||
* [[Sukuk]] | * [[Sukuk]] | ||
* [[Whole business securitisation]] | * [[Whole business securitisation]] | ||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
Revision as of 20:22, 4 July 2022
Assets - tradable securities.
To convert non-tradable assets into tradable securities.
For example turning non-tradable assets, like residential mortgage loans, into tradable assets (such as mortgage-backed securities).
This is often undertaken through a securitisation special purpose vehicle.
The credit risk of the assets is divided into tranches, and payments to the investors are dependent on the performance of the assets.
When a special purpose vehicle is used, the assets are transferred to the special purpose vehicle, which then issues securities.
Non-performance of underlying assets is a key risk for investors, and was one of the triggers for the Global Financial Crisis (GFC).
- Originators & Sponsors in securitisation
- "For the purposes of the Securitisation Regulation, the Originator of an asset is either a party that was directly or indirectly involved in the original creation of the asset, or acquired the asset for its own account and then securitised it.
- ... the Sponsor of a securitisation is a party that sets up the securitisation and manages it, but does not securitise its own assets."
- Originator - Sponsor - the Treasurer's Wiki.
