European ABS: Time for an Applelation Controlee?
Host: ABN-AMRO Bank, Amsterdam
Instructor: Prof. Ian Giddy New York University
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,
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
+1 212 998 0426
Time for an Appelation Controlee?
The European asset-backed securities market has provided fertile
ground for financial hybridization. Originating in a number of countries
and legal frameworks, ABS deals often wander far from the original ABS idea:
securities backed by assets that have been separated from their originator
and placed in a special-purpose company. This paper will explore some of
these variants, including those which perhaps do not deserve the ABS appellation.
In addition to ratings, European may need a quality designation system devised
to protect producers from imitators and to guarantee authenticity to consumers.
The Legal and Tax Aspects
Whole Busines Securitization
Problems with WBS
Key Distinguishing Features
Other resources on asset-backed securities:
Go to Giddy's Web Portal • Contact Ian Giddy at firstname.lastname@example.org
Copyright ©2003 Ian Giddy. All rights reserved.