New Developments in Asset-Backed Securities

Host:  Excellante International, Johannesburg, South Africa
 (excellanteinternational.com)

Instructor:
Prof. Ian Giddy
New York University


Outline Market Articles
Slides Links MBS

Asset Securitization
Asset-backed securities constitute a growing segment of the US and global capital markets. The asset securitization technique, 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 tradable 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.

For more details see the instructor's website,
absresearch.com


Instructor

Ian Giddy has taught finance at NYU, Columbia, Wharton, Chicago and in 30+ countries abroad for the past two decades. 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, he has served at the International Monetary Fund and the U.S. Treasury and has been a consultant with numerous corporations and financial institutions in the U.S. and abroad. 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.


Prof Ian Giddy
Stern School of Business
New York University
44 West 4th Street
New York, NY 10024
USA

ian.giddy@nyu.edu





    The Workshop

This workshop examines the structure and process of asset securitization and the merits of this technique for investors. The emphasis is on understanding the benefits, costs and risks from the issuer and investor viewpoints, how the rating agencies look at ABS risks, and how successful deals must be structured. Special attention is given to mortgage-backed securities, although the workshop looks at a number of different asset classes and structures, in the USA, Europe, and Asia, as well as South Africa. 

The workshop will include case studies of actual deals, as well as hands-on exercises, and will give participants the opportunity to demonstrate their understanding of deals through group and plenary discussions. 


Outline of Workshop

Morning

Financing with Asset Backed Securities

  • Introduction and update on the global ABS market

Managing the Legal and Tax Aspects

  • Typical ABS structure and process
  • A case study
  • Key legal requirements
  • True sale aspects
  • Synthetic ABS
  • Nature of special-purpose vehicles
  • Independence and bankruptcy issues

 

Managing the Credit Risks

  • Pool and structure analysis
  • Getting a rating – the process and the criteria
  • Credit enhancement: alternative approaches
  • Case study
  • What to watch out for – how SA can learn from others’ mistakes

Home Loan Securitisation

  • How mortgage securitisation works: international comparisons
  • Case study
  • Effect on cost of borrowing for mortgage holders
  • Access to new sources of finance – bank and non-bank
  • Issues of securitization and banking regulations in SA

Afternoon

Applications of Securitisation

  • Small business loan securitization (case study)
  • Car loan securitization (case study)
  • Asset-backed commercial paper (case study)
  • Project finance securitization (case study)

    Recap of the Workshop  


The Market Useful Articles Case Studies and Deals Workshop Slides Useful Websites


Other resources on asset-backed securities: 
 
Mortgage-Backed Securities:



Seminars conducted by Ian GiddyPowerpoint presentation documents
ArticlesCase studies
SpreadsheetsInternet links



Related websites:

giddy.org
giddyonline.com
financefixit.com
globalsecuritization.com
asiansecuritization.com
 
 


Go to Giddy's Web Portal • Contact Ian Giddy at ian.giddy@giddyonline.com
Last updated 10 Dec 2005 jog