Asset Securitization Training

60 Hours/3 Months Access/Instructor Support

Course Overview:

Asset Securitization (AS) has revolutionized the field of finance. It provides an opportunity for financial institutions to enhance liquidity, generate fee-based income and optimize the usage of capital. It can be a source of competitive financing for corporations. For investors, securitized assets offer additional investment opportunities with different risk/return trade-offs.

After completing this course, you will be able to:

Develop a conceptual framework for Asset Securitization
Analyze the factors that influence pricing of Asset-backed Securities
Review the Rating Agency's perspective on Asset Securitization
Evaluate the alternative structures for Credit Enhancement
Analyze the products and structures of several real-life examples of Securitization
Understand various other aspects such as Legal, Accounting, Tax and Supervision

Asset Securitization

Overview

Objectives
Introduction
Process of Asset Securitization
Cash Flows in Asset Securitization
Motives for Asset Securitization
Global Scenario

Credit Enhancement

Objectives
Fundamentals of Credit Enhancement
Internal Credit Enhancement
External Credit Enhancement
Calculating Credit Enhancement

Ratings Approach to Asset Securitization

Objectives
Concepts
Concerns
Rating Process
Rating Agencies

Residential Mortgage Backed Securities-Basics

Basics of Mortgage backed securities
Federally sponsored mortgage securities

Residential Mortgage Backed Securities-Prepayments

Concept of prepayment
Different prepayment standards

Residential Mortgage Backed Securities-Basic Structures

Pass Through Securities
Pay Through Securities

Residential Mortgage Backed Securities-Complex Structures

Planned Amortization Class
Targeted Amortization Class
Stripped Mortgage Backed Securities
Floaters
CMO Residuals

Mortgage-backed Securitization (Commercial)

Objectives
Introduction
Features of a CMBS transaction
Loan Evaluation and Rating Process
Case Studies

Auto Loan Receivables Securitization

Objectives
Introductory Concepts
Types of Loans
Auto Loan backed Securities Structure
Rating Process
Securitization for the First Time
Case Study

Credit Card Receivables Securitization

Objectives
Fundamentals of Credit Cards
Credit Card Securitization Process
Phases in Securitization and Trust Structures
Amortization Structures
Measures of Maturity and Early Amortization
Rating Process
Case Studies

Collateralized Debt Obligations (CDOs)

Objectives
Fundamentals
Types of CDOs
Synthetic CDOs
Different Periods for CDO
Rating Process
Role of Collateral Manager
CBOs Vs. CLOs

Case Studies (CDOs, CLOs, CBOs)

Objectives
Jubilee CDO I B.V.
ROSE Transaction
SBC Glacier Transaction
Panther CDO II B.V.

Future Flow Receivables Securitization

Objectives
Introduction to Future Flow Securitization
Reasons for Future Flow Securitization
Risks Involved
Securitization of Airline Ticket Receivables
Securitization of Export Receivables
Case Study

Home Equity Loans

Objectives
Introduction to Home Equity Loans
Types of Home Equity Loans
Pros and Cons of Home Equity Loans
Securitization of Home Equity Loans
Structures based on Credit Enhancement
Case Study - 1

Insurance Risk Securitization-I

Objectives
Concepts and Origin
Insurance Loss Indices
Instruments for Insurance Risk Securitization
Weather Risk Securitization
Analyzing Risk Securitization

Insurance Risk Securitization-II

Objectives
Catastrophe Bonds
Issuance of CAT Bonds
Insurance Risk Structure

Case Studies (Non-Performing Loans)

Objectives
Introduction
KAMCO
Ariosto s.l.r
Danaharta
Japan II Ltd.

Case Studies (Different Products)

Objectives
Trade Receivables Securitization
Equipment Lease Securitization
Inventory Securitization
Floor Plan Receivables Securitization

Case Studies (Asia & Australia)

Objectives
LG Card
Hanareum International Funding
RAMS Mortgage Corp. Ltd. Series 11
Series 2002-1G Medallion Trust

Case Studies (North America & Europe)

Objectives
Student Loans Securitization
Electricity Receivables Securitization
Defaulted Loans Securitization
Consumer Loans Securitization

Healthcare Receivable Securitization

Objectives
Introduction
National Century Financial Enterprise

Asset-backed Commercial Paper

Objectives
Introduction
Key Parties Involved
Risk Mitigation
Assets Securitized through ABCP Conduits
Legal Aspects of an ABCP Conduit

Project Management

Objectives
Policy Statement
Project Plan for Credit Cards Receivables
Project Plan for Auto Loans Receivables

Risk Management

Objectives
Introduction
Types of Risks
Types of Risks (Cont.)
General Risk Management Measures
Risk-based Capital

Legal Aspects

Objectives
Introduction
Secured transaction
Perfection, Priority and Enforcement
Bankruptcy Issues
Securities Regulations
UN Convention on the Assignment of Receivables

Accounting

Objectives
Fundamentals of Accounting under FASB 140
Determining Gain or Loss on Sale
Investor Accounting-EITF 99-20
Bank Regulatory Capital Relief
International Accounting Standards

Tax

Objectives
Introduction
Tax Treatment of Participants
Withholding
Taxation in Different Countries
The U.S. FASIT Law

Supervision

Objectives
Introduction
Guidelines from Various Agencies

JOB AIDS

Measurement Tools
Disclosures
Regulations
Global Best Practices
Benchmarking Data
Policy Templates
Prospectuses

Calculators in Asset Securitization:

Early Amortization
Calculating Return on Assets (ROA)
Conversion of Prepayment Rates
Convexity
CDO Cash Flows
Changes in Subordination Levels after Default
Loss Curves
Repossession
Loan to Value Ratio
Pass-through
Calculation of Credit Enhancement
Diversity Score Calculation
Accounting
Debt Service Coverage Ratio
Average Collateral Rating
Pricing reinsurance contract using CAT bonds
Risk-based capital
20. Credit Cards - Cash Flow Structures

Learner friendly courses with:

Formulae, definitions and concise summaries
Interactive simulations
Solved examples, practice exercises and quizzes
Mock exams from proprietary database
Timed tests in exam format
Personalized results for self assessment
Glossary, FAQs, Pocket Reference
Valuable reference extracts

Other features include:

E-mail subject-matter expert
Online with 24x7 customer support