EPRS Admin By / November 6, 2015

A traditional securitisation

A traditional securitisation

A traditional securitisation

A securitisation transaction starts when the originator identifies a pool of homogeneous assets that satisfy certain features that make them acceptable for securitisation – e.g. when a retail bank decides to isolate the amounts received (i.e. the principal and interest) from its mortgage lending. The collateral is assessed, cash flows are modelled and risk is quantified via stress tests or other techniques.


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