Financing with Asset-Backed Securities

A 4-day seminar of
IBBM - Institute of Bankers Malaysia
Kuala Lumpur, Malaysia
Web Site: www.ibbm.org.my
July 12-15, 1999

Seminar Description

Asset-backed securities constitute a growing segment of the Asian and global capital markets. The asset securitization techniques, while complex, has won a secure place in corporate financing and investment portfolios because it can, paradoxically, offer originators a cheaper source of funding and investors a superior return. Not only does securitization transform illiquid assets into tradeable securities, but it also manages to transform risk by means of the separation of good financial assets from a company or financial institution with little loss of revenue. The assets, once separated from the originator, are employed as backing for high-quality securities designed to appeal to investors.

This seminar asks why and when corporations and financial institutions should issue asset-backed securities, and which kind of such instruments make sense to investors. In two information-packed days of instruction and application, we hope to offer an economic cost-benefit analysis of the technique, an insight into the legal, accounting, tax and regulatory principles, the risks and how they can be managed, and a roadmap for choosing this technique over others in today's capital market.
 
Asset-backed securities are securities which are based on pools of underlying assets. These assets are usually illiquid and private in nature. A securitization occurs to make these assets available for investment to a much broader range of investors. The "pooling" of assets makes the securitization large enough to be economical and to diversify the qualities of the underlying assets. A special purpose trust or instrument is set up which takes title to the assets and the cash flows are "passed through" to the investors in the form of an asset-backed security. The types of assets that can be "securitized" range from residential mortgages to credit card receivables. The asset-backed security usually qualifies for a top rating and enables the issuing company or bank to raise funds at a very attractive rate, while freeing up capital and retaining customer relatiuonships and servicing revenues.

Asset-backed securities are securities which are based on pools of underlying assets. These assets are usually illiquid and private in nature. A securitization occurs to make these assets available for investment to a much broader range of investors. The "pooling" of assets occurs to make the securitization large enough to be economical and to diversify the qualities of the underlying assets.

Who Should Attend

The seminar is of relevance to both potential originators and investors in asset-backed securities: bank officers; securities analysts; investment officers; corporate treasurers and other individuals whose professional future may be enhanced by an understanding of the asset securitization technique.

Materials

Participants will be provided with a package of materials useful to the structuring and analysis of asset-backed deals, including pertinent articles, rating agency reports and sample documentation from actual deals done in Asia and elsewhere.

Instructor

Dr. Ian Giddy is a professor of finance at New York University, USA. He has taught finance at NYU, Columbia, Wharton, Chicago and abroad for the past twenty-two 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, the U.S. and Asia. He is the author or co-author of The International Money Market, The Handbook of International Finance, Cases in International Finance, Global Financial Markets and The Hudson River Watertrail Guide. He is currently completing a book on asset securitization in Asia.

Schedule
Schedule
 
Date Topics
Monday 
July 12th
  • Corporate Finance and the Economics of Asset Securitization
  • The Key Elements of ABS
  • The Securitization Process
Tuesday 
July 13th
  • Cost-Benefit Analysis
  • Legal, Tax, Accounting and Disclosure Aspects of ABS
Wednesday
July 14th
  • Structuring and Pricing Asset-Backed Securities: Case Studies in Different Countries and with Different Assets
  • Managing the Credit Risks
Thursday 
July 15
  • Managing the Non-Credit Risks in Asset-Backed Securities
  • New Applications of the ABS Techniques
  • Summary and Outlook for the ABS Market

Seminar Content


Monday

Corporate Finance and the Economics of Asset Securitization

The Key Elements of Asset-Backed Securities The Securitization Process


Tuesday 

Cost-Benefit Analysis

Legal, Tax, Accounting and Disclosure Aspects of ABS


Wednesday 

Structuring and Pricing Asset-Backed Securities: Case Studies in Different Countries and with Different Assets

Credit Risk Management in Asset-Backed Financing


Thursday

Non-Credit Risk Management in Asset-Backed Financing

Asset-Backed Infrastucture Financing New Directions in Asset-Backed Securities Summary and Outlook for the ABS Market

Go to Giddy's Web Portal • Contact Ian Giddy at ian.giddy@nyu.edu