Workshop on Structured
Finance
Structured
Finance:
-
Redesign
corporate
debt and equity to support M&A
-
Securitize
financial
assets
-
Create
hybrids to
solve issuer or investor problems
Day
1
Financing with Asset-Backed
Securities
Day
2
Leveraged and Acquisition
Finance
Day
3
Structured Notes and
Debt-Equity
Hybrids
See Also:
DBS
Workshop on Corporate Financial Restructuring
Background
Materials on Corporate Finance
Financial
Restructuring in Asia: Issues and Opportunities
Related websites:
giddy.org
giddyonline.com
financefixit.com
asiansecuritization.com
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Workshop on Structured Finance
Ian Giddy
New York University
Structured Finance is the design
of debt
or equity financing techniques in order to solve particular issuer or
investor
problems that cannot be solved by conventional methods.
Schedule and Case
Study Assignments
Day 1
Financing with Asset-Backed Securities
| Time |
Topic |
Remarks |
| 8:30-10:00 |
Introduction to structured finance and review of
corporate financial
restructuring
Asset-backed securities: how it works, and why |
Selection of live case studies (see Seagate; CCM; ASAT;
Mando)
Discussion of Finance Company Bhd and Ford cases |
| 10:00-11:00 |
Legal, accounting and regulatory issues in ABS |
Discussion of 6 Battery Road and KAMCO cases |
| 11:00-12:00 |
Special topic: Securitization of trade receivables |
ABCP case study: CAST |
| 12:00-13:30 |
Working lunch |
Group work on Hong Kong Cards case study |
| 13:00-14:30 |
ABS cost-benefit evaluation |
Analysis of Hong Kong Cards case |
| 14:30-16:00 |
Special topic: CLOs and CDOs |
Case studies: KAMCO and Singa and GEM V CBO |
| 16:00-17:00 |
The role of leverage and structured securities in
Western and Asian
M&A deals |
CCM, ASAT and Mando cases
Applications of valuation in acquisitions and divestitures |
Day 2
Leveraged and Acquisition Finance
| Time |
Topic |
Remarks |
| 8:30-9:30 |
Example of spreadsheet analysis for leveraged finance |
|
| 9:30-12:00 |
How to structure and price the leverage for an
acquisition. |
John M Case leveraged finance case |
| 12:00-13:00 |
Lunch |
|
| 13:00-14:30 |
Leveraged buy-out case study |
Group analysis of Infox case
Discussion of Infox case |
| 14:30-16:00 |
Leveraged build-up and leveraged recapitalization |
K-III and Sealed Air case studies |
| 16:00-17:00 |
Post-acquisition leveraged finance |
EMAS case study |
| 17:00-17:30 |
Discussion: When is leveraged lending suitable for
Asian corporations? |
Singapore applications? |
Day 3
Structured Notes and Debt-Equity Hybrids
| Time |
Topic |
Remarks |
| 8:30-9:00 |
When should a company issue quasi-equity or hybrid
securities? |
Discussion of financing choices flowchart and PEPS
exchangable bond |
| 9:00-10:00 |
Callable bonds, options, swaptions and other
fixed-income derivatives
embedded in structured financing techniques |
Demonstation of hands-on use of pricing models |
| 10:00-12:00 |
Design and pricing of fixed-income structured notes |
Group work on reverse floater case |
| 12:00-13:00 |
Working lunch |
Case study: Enron credit-sensitive notes |
| 13:00-14:00 |
Credit swaps, synthetic ABS, and related instruments |
Discussion of Enron |
| 14:00-15:00 |
Design of convertibles, warrants and other debt-equity
hybrids |
Singapore and regional applications |
| 15:00-17:00 |
Group work on Singapore case studies |
|
| 17:00-17:30 |
Summary of workshop and next steps |
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Pre-Workshop
Readings
Participants will benefit from reading some or all of the
following
before the workshop.
The
Market
Useful
Articles
Case
Studies and Deals
Workshop
Slides
Useful
Websites
Securitization
Books
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The Art of M&A
Financing and Refinancing
by Alexandra Reed Lajoux and J Fred Weston, McGraw-Hill
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The New Financial
Capitalism by George
Baker and George David Smith, Cambridge
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Takeovers,
Restructuring and Corporate Governance, by J Fred Weston et al.,
2nd
Edition, Prentice-Hall
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Damodaran
on Valuation, by Aswath Damodaran, Wiley
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Valuation,
by Thomas Copeland et al., Mc Kinsey, 2nd Edition
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Mergers
& Acquisitions : Managing the Transaction Joseph C.
Krallinger
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More
books...
Background Materials
Background Materials on Corporate Finance may be found at
the
following website:
http://giddy.org/ibmfinance/finmat.htm
Excel spreadsheets for Corporate Finance and Valuation may
be
found at:
http://giddy.org/ibmfinance/spreadsheets.htm
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