Asset Securitization Training

60 Hours / 3 Months / Mentor Supported

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. This course presents an introduction to asset securitization, credit enhancement, and helps you understand the ratings approach to Asset Securitization.  Topics presented are extensive. Please visit our course description online for more information.

Course Outline:

Overview: This course gives an introduction to asset securitization and its process and the different entities involved in securitization. It helps the user understand:
  • Process of asset securitization
  • Cash flows in asset securitization
  • Benefits to different entities in Asset securitization
  • Global scenario of asset securitization
Credit Enhancement: Topics covered include:
  • Fundamentals of credit enhancement
  • Types of credit enhancement
  • Companies providing credit enhancement
  • Calculating credit enhancement
Ratings Approach to Asset Securitization: This course explains the process of rating the asset  backed securities. It helps the user understand:
  • Credit rating in asset securitization
  • Various concerns of rating agencies            
  • A generalized approach used by rating agencies
Residential Mortgage Backed Securities – Basics: Topics covered include:
  • Basics of Mortgage backed securities
  • Federally sponsored mortgage securities
Residential Mortgage Backed Securities – Prepayments: Topics covered include:
  • Concept of prepayment
  • Different prepayment standards
Residential Mortgage Backed Securities - Basic Structures: Topics covered include:
  • Pass Through Securities
  • Pay Through Securities
Residential Mortgage Backed Securities - Complex Structures: This course gives an introduction to Mortgage Backed Securities (MBS) and its features.Topics covered include:
  • Planned Amortization Class
  • Targeted Amortization Class
  • Stripped Mortgage Backed Securities
  • Floaters
  • CMO Residuals
Mortgage Backed Securitization (Commercial): This course gives an introduction to Commercial Mortgage Backed Securities (CMBS) and its features. Topics covered include:
  • Differences between residential and commercial mortgages
  • Elements and features of a typical CMBS
  • Commercial loan evaluation and rating process
Auto Loan Receivables Securitization: This course gives an introduction to Auto Loan Receivables Securitization and its structure. Topics covered include:
  • Types of auto loans originated and securitized
  • Structure of auto loan backed securities
  • Features of trust structures
  • Rating process in auto loan securitization
  • Significant aspects of securitization for first time securitizers
Credit Card Receivables Securitization: This course gives an introduction to Credit Card Receivables Securitization and its process and features.Topics covered include:
  • Fundamentals of Credit Card Receivables
  • The structure of Credit Card Receivables transaction
  • Securitization process
  • Various measures of maturity
  • Concepts of Interchange and Early Amortization
  • Rating process for credit card receivables securitization
Collateralized Debt Obligations: This course gives an introduction to Collateralized Debt Obligations (CDOs).Topics covered include:
  • Fundamentals of CDOs
  • Balance Sheet Vs. Arbitrage CDOs
  • Cash Flow Vs. Market Value Structures
  • Synthetic Structures
  • Motivations behind CDOs
  • Rating Process
  • Role of Asset Manager
  • Distinction between CBOs and CLOs
Case Studies (CDOs, CLOs, CBOs): This course explains the practical aspects of collateralized obligations, its structure and design with the help of case studies. It discusses the following case studies:
  • Jubilee CDO I B.V
  • ROSE Transaction
  • SBC Glacier Transaction
  • Panther CDO II B.V
Future Flow Receivables Securitization: Topics covered include:
  • The basics of future flow receivables securitization
  • Reasons for future flow receivables securitization
  • Risks involved
  • Securitization of airline ticket receivables
  • Securitization of export receivables
Home Equity Loans: This course explains Securitization of Home Equity Loans with case studies. It helps the user understand:
  • Fundamentals of Home Equity Loans
  • Types of Home Equity Loans
  • Pros & Cons of Home Equity Loans
  • Securitization of Home Equity Loans
  • Structures based on credit enhancement
Insurance Risk Securitization-II: This course gives an introduction to the concept of Catastrophe (CAT) Bonds and the process.Topics covered include:
  • CAT Bonds
  • Issuance of CAT Bonds
  • Probabilities and Cash Flows of CAT Bonds
  • Types of Insurance Risk Structures
Case Studies (Non-Performing Loans): This course gives an introduction to securitization of non-performing loans. It discusses the following case studies:
  • Korea Asset Funding 2000-1 Limited (KAMCO)
  • Ariosto S.r.l
  • Danaharta
  • Japan II Ltd.
Case Studies (Different Products): This course introduces the user to a few other products that can be securitized. It deals with case studies of products like:
  • Trade receivables securitization
  • Equipment lease securitization
  • Inventory securitization
  • Dealer floorplan receivables securitization
Case Studies (Asia and Australia): This course discusses the following case studies from Asia and Australia:
  • LG Card
  • Pemex Finance Ltd.
  • Pemex Finance Ltd.
  • RAMS Mortgage Corp. Ltd. Series 11
  • Series 2002-1G Medallion Trust
Case Studies (North America and Europe): This course discusses the following case studies from North America & Europe,the largest markets in terms of securitization:
  • Wells Fargo Student Loans Receivables I LLC
  • BEC Funding LLC
  • Ares Finance S.r.l.
  • LIBRAVOU FL3
Healthcare Receivable Securitization: This course gives an introduction to securitization of healthcare receivables securitization. It discusses the following:
  • Concepts of healthcare receivables
  • The case of National Century Financial Enterprise
Asset Backed Commercial Paper: This course gives an introduction to Asset Backed Commercial Paper (ABCP) conduits. It helps the user understand:
  • Fundamentals of ABCP conduits
  • Key parties to a transaction
  • The risks faced by ABCP investors and methods to mitigate them
  • Assets securitized through ABCP conduits
  • Legal issues associated with ABCP conduits
Project Management: Topics covered include:
  • An outline of various components of a basic asset securitization policy statement
  • Project Plan for Credit Card Responsibility Delegation
  • Project Plan for Auto Loans Responsibility Delegation
Risk Management: Topics covered include:
  • The risks involved in asset securitization
  • Nature of these risks
  • Methods to manage each risk
  • General risk management measures
  • Risk-based capital requirements
Legal Aspects: Topics covered include:
  • The importance of ownership and title to the collateral involved in securitization transactions
  • The importance of establishing priority in having recourse against the collateral
  • The bankruptcy issues and the consequent reforms in the United States
  • The procedures for ABS issue as under the United States laws
  • The UN convention on Assignment of Receivables
Accounting: This course discusses the accounting aspect of asset securitization and the laws governing this issue. It helps the user understand:
  • Accounting for Asset Securitization under FAS 140
  • Sale and loan treatment
  • Gain or loss on sale accounting
  • Investor Accounting
  • Bank Regulatory Capital Relief
  • International Accounting Standard: IAS 39
Tax: Topics covered include:
  • Taxation of different participants in the securitization process
  • Tax issues in select countries
  • Applicability of Withholding Tax
  • Relevant aspects of The U.S. FASIT Law
Supervision: Topics covered include:
  • Office of the Comptroller of the Currency
  • Federal Deposit Insurance Corporation
  • Federal Reserve System
  • Interagency guidance on asset securitization activities

All necessary materials are included.


System Requirements:

Internet Connectivity Requirements:
  • Cable and DSL internet connections are recommended.
Hardware Requirements:
  • Minimum Pentium 400 Mhz CPU or G3 Macintosh. 1 GHz or greater CPU recommended.
  • 256MB RAM minimum. 1 GB RAM recommended.
  • 800x600 video resolution minimum. 1025x768 recommended.
  • Speakers/Headphones to listen to Dialogue steaming audio sessions.
  • A microphone to speak in Dialogue streaming audio sessions.
Operating System Requirements:
  • Windows Vista, 7, 8, 8.1, 9, 10
  • Mac OSX 10 or higher.
  • OpenSUSE Linux 9.2 or higher.
Web Browser Requirements:
  • Google Chrome is recommended.
  • Firefox 13.x or greater.
  • Internet Explorer 6.x or greater.
  • Safari 3.2.2 or greater.
Software Requirements:
  • Adobe Flash Player 6 or greater.
  • Oracle Java 7 or greater.
  • Adobe Reader 7 or greater.
Web Browser Settings:
  • Accept Cookies
  • Disable Pop-up Blocker.


** Outlines are subject to change, as courses and materials are updated. Software is not included with the purchase of the course, unless otherwise specified. Students are responsible for the purchase and installation of the necessary course software. **