Financing

Securitization

Securitization

Acquiring financing by converting assets into debt securities

Securitization

Acquiring financing by converting assets into debt securities

Securitization is a funding method transforming relatively illiquid balance sheet exposures into tradable securities placed with investors, with the purpose of raising funds in the markets. Securitization means a transaction in which payments depend upon the performance of the securitized assets and the tranching of the credit risk determines the distribution of losses during the life of the transaction.

A typical example would see a pool of financial assets e.g. car finance loans, home or commercial mortgages, corporate loans, leases, or contractually pledged operating revenues, transferred to a Special Purpose Vehicle (SPV) that then issues debt backed solely by the assets transferred and payments derived from those assets.


Advantages:

  • securitization improves the banks liquidity - the originator does not have to wait until it receives payment of the receivables
  • more diversified liability structure enables the company to enhance its financial flexibility
  • allows obtaining funding from the diversified investor base

Are you interested in our offer?

Please contact us on the following numbers:

+48 (22) 657 74 51
+48 (22) 690 16 57
+48 (22) 657 79 60
+48 (22) 657 72 15

The cost of the call depends on your local service provider.

The most important features of the product

  • Conversion of usually not tradable exposures into tradable instruments
  • Securitization can offer issuers higher credit ratings and lower borrowing costs
  • Securitization allows for active credit action and transfer of decreased financing cost (achieved via ABS) to borrowers