What the Session is About
Asset-backed
securities
constitute a growing and complex segment of the global capital markets.
The technique is becoming widely employed in developing as well as
developed countries.
The workshop provides an insight into the state of the art in
securitization and structured credit risk transfer, with an emphasis on
consumer finance and automobile leasing. In addition to
covering the technique of asset-backed securities in emerging markets,
we look at synthetic
asset securitization, a versatile and
fast-growing technique in the ABS market. It opens new possibilities
for receivables funding and the management of credit risk.
Issues
Open for Discussion
- Where
is the global asset-backed securities market headed?
- How
is a securitization deal structured?
- What
are the key legal and regulatory issues in the asset-backed market
today, and how are they addressed in different forms of ABS?
- What
is special about consumer credit securitization?
- What
is "future flow securitization"? What
risk transfer choices do emerging market banks have?
Topics
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Resources
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Asset-Backed
Securities Today
- The state of the
market
- Getting an ABS deal
to market
- Credit enhancement
- Cash flow analysis
and pricing
- Example:
Finance Company Berhad. We review the
process, structure and cash flows of this Malaysian deal
- Key legal
prerequisites of ABS today
- Illustration: Hyundai Auto Loan
Securitization
- Tiering the funding
structure
- Future-flow
securitization
- Example: Pakistan Telecommunications:
Securetel SPV.
- Securitization
as a local-currency
asset-liability management tool.
- Illustration: Microfinance Securitization
in Bangladesh
Risk Transfer: Beyond Asset-Backed
Securities
- The
growing importance of collateralized collateralized loan obligations
(CLOs) and credit derivatives
- CLO credit enhancement and ratings
- Alternative risk transfer methods via
synthetic ABS
- Example:
Red & Black. A French synthetic consumer credit
securitization.
- Conclusion: risk transfer choices for
banks in emerging markets
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Presentation
abs-tii.pdf
Case studies
Finance
Co. Bhd
Hyundai
Auto ABS
Paktel
BRAC
Microfinance ABS
Red
& Black
Articles
Introduction
to ABS
Rating
Consumer Credit ABS
Auto
Lease ABS
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About the Instructor
Ian Giddy is
on the faculty of finance at New York University, USA. He has taught
finance at NYU, Columbia,
Wharton, Chicago and abroad for the past thirty years. He was
Director
of International Fixed Income Research at Drexel Burnham Lambert from
1986
to 1989. The author of more than fifty articles on international
finance,
Dr Giddy has served at the International Monetary Fund and the U.S.
Treasury
and has been a consultant with numerous financial institutions and
corporations
in Europe, North America, the Middle East and Asia. He has lectured in
more than forty countries, and has been involved in the asset-backed
securities market for over 15 years. He is the author or co-author of
The
International
Money Market, The Handbook of International Finance, Cases
in International Finance, Global Financial Markets, Asset
Securitization in Asia, and The
Hudson River Watertrail Guide. He and his
wife are the founders of Cloudbridge, a nature reserve in Costa
Rica.
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