What the Lecture is About
Asset-backed
securities
constitute a growing and complex segment of the global capital markets
and have
become widely employed in developing as well as developed countries.
This lecture provides an in-depth insight into the state of the art in
securitization and structured credit risk transfer. In addition to
covering new developments in asset-backed securities and collateralized
debt obligations, the lecture explains risk transfer using synthetic
asset securitization, a versatile and
fast-growing technique in the ABS market. It opens new possibilities
for the transfer,
pricing and management of credit risk.
Issues
to be Discussed
- Where
is the global asset-backed securities market headed?
- 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 "future flow securitization"?
- What is
the connection between synthetic asset-backed securities and the
markets for
credit derivatives?
- 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
- Tiering the funding
structure
- Cash flow analysis
and pricing
- Example:
Finance Company Bhd. We review the
process, structure and cash flows of this Malaysian deal
- Key legal
prerequisites of ABS today
- Future-flow
securitization
- Example: Pakistan Telecommunications:
Securetel SPV. Securitization as a local-currency
asset-liability management tool.
Risk Transfer: From ABS to CDOs
- The
growing importance of collateralized debt obligations (CDOs) and
collateralized loan obligations (CLOs)
- CDO credit enhancement and ratings
- Risk transfer though credit default
swaps
- Alternative risk transfer methods via
synthetic ABS
- Example:
Fresco. A South African synthetic CLO securitization.
- Conclusion: risk transfer choices for
banks in emerging markets
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Presentation
abs-habib.pdf
Case studies
Finance
Co. Bhd
Paktel
Fresco
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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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