Securitization & Structured Finance Masterclass

Securitization is the process conversion of receivables and cash flow generated from a collection or pool of financial assets like mortgage loans, auto loans, credit card receivables etc into the marketable securities. These securities are backed by respective assets. 

This masterclass describes securitization and the analysis of transactions, based on three pillars: the underlying pool of assets, the transaction structure, and the legal aspects. It looks at the major product groups including credit derivatives. 

We will also cover how securitization issues can be analyzed by looking at cash flows including prepayments, price yield behavior and valuation issues relating to MBS and ABS instruments. 

It covers the principles found throughout the securitization market, as well as specific characteristics of the main asset classes, including residential mortgages, consumer loans, and corporate debt. The course also gives an overview of the publicly available credit rating methodologies. Enroll now and enhance your competence and knowledge.

The benefits of structured finance training and securitization are many.

• For one, it helps to spread the risk associated with specific assets. Additionally, it also allows for a more efficient allocation of capital.
• By pooling together assets and selling them off as securities, investors can get exposure to a broader range of investments than possible otherwise. This, in turn, leads to higher returns for investors.
• Finally, structured finance training and securitization also help create a more liquid market for certain assets. This is because securities can be traded on secondary markets, which allows for a greater degree of price discovery.

Outline:

• Identify the uses and benefits of securitization
• Identify the steps in the securitization process and describe SPV structures
• Describe securitization and SPV structures
• Get an overview of the different types of securitization
• Have explained to them the underlying assets due diligence
• Understanding how credit enhancement is sized
• The components of the securitization structures
• Identify key risks from an investors point of view
• Understand the different cash-flow and asset-loss allocation mechanisms in securitizations
• Understanding the role and various forms of CE
• Identify the credit enhancement mechanisms found in structures
• Anticipate the main legal issues that are likely to arise regarding a securitization