Securitise: Difference between revisions

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imported>Doug Williamson
(Create page. Sources: Linked pages.)
 
(Standardise spelling of 'tradeable'.)
 
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''Assets - tradable securities''.
''Assets - tradeable securities''.


To convert non-tradable assets into tradable securities.
To convert non-tradeable assets into tradeable securities.


For example turning non-tradable assets, like residential mortgage loans, into tradable assets (such as mortgage-backed securities).
For example turning non-tradeable assets, like residential mortgage loans, into tradeable assets (such as mortgage-backed securities).




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* [[Collateralise]]
* [[Collateralise]]
* [[Covered bond]]
* [[Covered bond]]
* [[GFC]]
*[[Global Financial Crisis]] (GFC)
* [[Loan]]
* [[Loan]]
* [[Mortgage]]
* [[Mortgage]]
* [[Mortgage-backed securities]]  (MBS)
* [[Mortgage-backed securities]]  (MBS)
* [[Originator]]
* [[Originator]]
* [[Secured]]
* [[Securitisation ]]
* [[Securitisation ]]
* [[Securitisation Regulation]]
* [[Securitisation Regulation]]

Latest revision as of 14:06, 20 November 2023

Assets - tradeable securities.

To convert 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).


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.


See also