DBS Bank
Workshop on Structured Finance
Structured
Finance:
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Redesign corporate
debt and equity to support M&A
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Securitize financial
assets
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Create hybrids to
solve issuer or investor problems
Day 1
Leveraged and Acquisition Finance
Day 2
Financing with Asset-Backed Securities
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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DBS Bank
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
Leveraged and Acquisition Finance
| Time |
Topic |
Remarks |
| 8:30-10:15 |
The role of leverage and structured securities in Western and Asian
M&A deals |
Applications of valuation in acquisitions and divestitures |
| 10:30-12:00 |
How to structure and price the leverage for an acquisition. |
Introduction to leveraged finance case |
| 12:00-13:00 |
Working lunch |
Group discussion of LBO case |
| 13:00-14:00 |
Office time |
|
| 14:00-14:30 |
Leveraged buy-out case study |
Discussion of case |
| 14:30-16:00 |
Leveraged recapitalization |
Recap case study |
| 16:00-17:00 |
Post-acquisition leveraged finance |
EMAS case study |
| 17:00-17:30 |
Discussion: When is it suitable for DBS clients? |
|
Day 2
Financing with Asset-Backed Securities
| Time |
Topic |
Remarks |
| 8:30-10:00 |
Asset-Backed Securities: Rationale and Process |
Discussion of Finance Company Bhd and other 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: Phebus |
| 12:00-13:00 |
Working lunch |
Group work on Ford Motor case study |
| 13:00-14:00 |
Office time |
|
| 14:00-15:00 |
ABS cost-benefit evaluation |
Analysis of Ford Motor case |
| 15:00-16:00 |
Special topic: CLOs and CDOs |
Case studies: KAMCO and Singa |
| 16:00-17:30 |
Applications of securitization: when is it suitable for DBS clients? |
Discussion of Hong Kong Cards case |
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 |
| 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 |
| 13:00-14:00 |
Office time |
|
| 14:00-15:00 |
Design of convertibles, warrants and other debt-equity hybrids |
Singapore and regional applications |
| 15:00-16:30 |
Identification of client need, use of capital markets and treasury
instruments and derivatives |
Discussion of credit swaps, synthetic ABS, and related instruments |
| 16:30-17:30 |
Summary of workshop and next steps |
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Articles
What is Leveraged Finance?
Leveraged Finance in Asia
LBOs in Europe
Case Studies
ASAT -- A Hong Kong LBO
MANDO -- A Korean LBO
EMAS -- After the LBO
Links
Asiaventure
Financefixit.com
Asiansecuritization.com
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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giddy.org