Monopolies and Mergers Commission and Securitisation: Difference between pages

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(MMC).  
1.  ''Assets - tradable securities''.


The former body established by the UK government to investigate and report on circumstances, particularly mergers and takeovers, which might or might not create monopolies.
The process of converting non-tradable assets into tradable securities.


The MMC was subsequently replaced by the Competition & Markets Authority.  
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).
 
 
2.
 
The tradable securities created by the securitisation process.
 
 
3. ''Securities - issuance.''
 
The trend for larger non-financial companies to use less bank lending facilities and instead to issue their own securities direct to the markets.




== See also ==
== See also ==
* [[Competition & Markets Authority]]
* [[CDO]]
* [[Merger]]
* [[CMBS]]
* [[Monopoly]]
* [[Collateral]]
* [[Covered bond]]
* [[Factoring]]
* [[GFC]]
* [[Prospectus Regulation]]
* [[Securitisation Regulation]]
* [[Securitisation special purpose vehicle]]
* [[Securitisation swap]]
* [[Security]]
* [[Significant Risk Transfer]]
* [[SSPE]]
* [[Sukuk]]
* [[Whole business securitisation]]
 
 
===Other links===
[http://www.treasurers.org/node/9209 The return of securitisation, The Treasurer, July 2013]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Long_term_funding]]
[[Category:The_business_context]]

Revision as of 15:14, 17 March 2021

1. Assets - tradable securities.

The process of converting 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).


2.

The tradable securities created by the securitisation process.


3. Securities - issuance.

The trend for larger non-financial companies to use less bank lending facilities and instead to issue their own securities direct to the markets.


See also


Other links

The return of securitisation, The Treasurer, July 2013