ABSResearch.com

Seminars and resources on asset-backed securities

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This website is provided as a public resource by 
Ian H. Giddy
Professor of Finance
New York University

Link to giddy.org: resources in finance


   
Asset-Backed Securities
Asset-backed securities constitute a growing segment of the US, European and global capital markets. In recent years the ABS market has enabled companies and banks to finance a wide range of assets in the public debt market and has attracted a variety of fixed-income investors. 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 website offers articles, case studies, Internet links and downloadable resources on the securitization technique. 


What is Asset Securitization?
click on the diagram to expand it

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 trade receivables and even music royalties. 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. 
Recent Seminars on Securitization
 

Related websites:

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

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