Securitisation: Difference between revisions
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1. | 1. ''Assets - tradeable securities''. | ||
The process of converting non-tradeable assets into tradeable securities. | |||
For example turning non-tradeable assets, like residential mortgage loans, into tradeable assets (such as mortgage-backed securities). | |||
This is often undertaken through a securitisation special purpose vehicle. | This is often undertaken through a securitisation special purpose vehicle. | ||
| Line 9: | Line 12: | ||
When a special purpose vehicle is used, the assets are transferred to the special purpose vehicle, which then issues securities. | 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. | 2. | ||
The | The tradeable securities created by the securitisation process. | ||
3. | 3. ''Securities - issuance.'' | ||
The trend for | 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 == | ||
* [[CDO]] | * [[CDO]] | ||
* [[CMBS]] | |||
* [[Collateral]] | |||
* [[Collateralise]] | |||
* [[Covered bond]] | * [[Covered bond]] | ||
* [[Factoring]] | * [[Factoring]] | ||
*[[Global Financial Crisis]] (GFC) | |||
* [[Loan]] | |||
* [[Mortgage]] | |||
* [[Mortgage-backed securities]] (MBS) | |||
* [[Prospectus Regulation]] | |||
* [[Receivables securitisation]] | |||
* [[Securitisation Regulation]] | |||
* [[Securitisation special purpose vehicle]] | * [[Securitisation special purpose vehicle]] | ||
* [[Securitisation swap]] | * [[Securitisation swap]] | ||
* [[Securitise]] | |||
* [[Security]] | * [[Security]] | ||
* [[Significant Risk Transfer]] | * [[Significant Risk Transfer]] | ||
* [[Sponsor]] | |||
* [[SSPE]] | * [[SSPE]] | ||
* [[Sukuk]] | * [[Sukuk]] | ||
* [[ | * [[Whole business securitisation]] | ||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
Latest revision as of 19:28, 20 January 2024
1. Assets - tradeable securities.
The process of converting non-tradeable assets into tradeable securities.
For example turning non-tradeable assets, like residential mortgage loans, into tradeable 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 tradeable 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
- CDO
- CMBS
- Collateral
- Collateralise
- Covered bond
- Factoring
- Global Financial Crisis (GFC)
- Loan
- Mortgage
- Mortgage-backed securities (MBS)
- Prospectus Regulation
- Receivables securitisation
- Securitisation Regulation
- Securitisation special purpose vehicle
- Securitisation swap
- Securitise
- Security
- Significant Risk Transfer
- Sponsor
- SSPE
- Sukuk
- Whole business securitisation
