While securitization is a well established practice N in the global debt capital markets. And while the market in structured finance securities was hit hard by the 2007 2008 financial
crisis-when investors shunned asset backed securities-interest in securitization has resumed as the global economy recovers.
The Mechanics of Securitization is an accessible and practitioner oriented look into what is required to successfully structure and close asset backed security transactions in today’s complex
financial markets. The text is aimed at practitioners in structured finance who are involved with originating, structuring, or arranging securitization transactions. It addresses the necessary
tasks for commercial banks that are interested in closing a securitization of assets off their own balance sheet or a third party balance sheet whether these assets are corporate loans,
mortgages, credit card loans, or other more esoteric ＂future flow＂ cash receivables.
The text is aimed at providing a step by step guide to the process undertaken to arrange, structure, and close a securitization deal, and includes insights on the rating agency and legal review
requirements. The template used applies to cash transactions in asset backed securities, mortgage backed securities, and corporate loan deals. Details of a cash flow waterfall model are also
discussed. Using an actual securitization transaction as its background, the book also features a series of checklists and pro forma documents to illustrate the process of structuring a typical
loan ABS or CLO transaction.
