Asset securitization, one of the core techniques of structured finance, constitutes a growing segment of the global capital markets. Despite recent credit market disruptions, the ABS market has enabled companies and banks to finance a wide range of assets and claims, and has attracted a variety of fixed-income investors. Not only does securitization transform illiquid assets into tradeable securities, but it also manages to transform risk by means of the separation of specific financial assets from a company or financial institution with little loss of revenue. The assets, once separated from the originator or isolated, are employed as backing for high-quality securities designed to appeal to investors.

Equity-linked securities, including warrant bonds, convertible notes, preferred stock, index-linked securities and others now offer corporations and banks a means of financing during circumstances when ordinary techniques fall short. There is no longer a clear division between debt and equity. Companies seek the best of each, while lenders and investors often demand the security and priority of claims offered by debt, while expecting some participation on the upside in exchange for the risks they take.

This intensive course explains why and when corporations and financial institutions should issue equity-linked funding, asset-backed securities, leveraged finance or other forms of structured finance. In four information-packed days of instruction and application, we offer an economic cost-benefit analysis of the techniques, an insight into the legal, accounting, tax and regulatory principles, the risks and how they can be managed, methods of cash-flow modeling, and a roadmap for choosing among the alternative forms of these techniques that are employed in today's global capital market.

One goal for participants is to develop a check list or rapid overview of the key criteria in a structured finance deal, to consider when analyzing a proposal, so as to grasp the main strengths and risks of each structure after an initial rapid analysis.

Who Should Attend?

The seminar is of relevance to both potential originators and investors in structured securities: corporate finance officers, commercial and investment bankers, securities analysts; investment officers; corporate treasurers and other individuals whose professional future may be enhanced by an understanding of structured finance techniques.

Course Materials

Participants will be provided with a package of materials useful to the structuring and analysis of specially tailored financing techniques, including pertinent articles, rating agency reports and sample documentation from actual deals done in Europe and elsewhere. The workshop will include case studies of actual financings in Asia, Europe and North America, as well as hands-on exercises, and will give participants the opportunity to demonstrate their understanding of deals through presentations and discussions. 

• What is structured finance? Why and when should companies consider the use of structured financing techniques?
  
• What are the key legal and credit issues surrounding asset-backed financing, and how can they be satisfied?
• How have developments in the CDO market affected the credit markets?
  
• Synthetic ABS: how do they really work, and what are their strengths and shortcomings? How are credit derivatives used in conjunction with synthetics?
  
• What role do "structured notes" play in a corporation's funding strategy?
  
• How do equity-linked financing techniques such as convertible bonds work, and when does it make sense to use them? How are they priced?
• What are the various forms of subordinated and mezzanine finance?
  
• What is leveraged finance? How can it be use to facilitate a management buyout or other forms of ownership transition? When should a company undertake a leveraged recapitalization?