This course will be taught around four major topics employing in-depth group work on case studies, financial analysis and deal documentation. The focus will be on identifying situations that call for nonstandard corporate finance solutions, and the design and pricing of the situation-specific financing instruments. Examples of such situations include balance sheet or capital constraints, private equity and leveraged buyouts, recapitalizations, stress-induced financial restructuring, and arbitrage-driven hybrid debt funding.
Asset securitization, one of the core techniques of structured finance,
constitutes a growing segment of the European
global capital markets. In recent years the ABS market has enabled
and banks to finance a wide range of assets and claims,
has attracted a variety of fixed-income investors. Not only
securitization transform illiquid assets into tradable securities, but
it also manages to transform risk by means of the separation of
assets from a company or financial institution with little loss of
The assets, once separated from the originator, are employed as backing
for high-quality securities designed to appeal to investors.
The course explains why and when corporations
should issue mezzanine 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, tax and
principles, the risks and how they can be managed, methods of cash-flow
modeling, and a roadmap for
among the alternative forms of these techniques that are employed in
today's capital market.
Who Will Benefit From This Course?
The course 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. 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.
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 course will include case studies of actual financings, as well as hands-on exercises, and will give participants the opportunity to demonstrate their understanding of deals through presentations and discussions.
Some of the issues to be explored:
Outline of Course
Ian Giddy has taught finance at NYU, Columbia, Wharton, Chicago and in 40+ countries worldwide 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. As a banker and consultant he has been involved in the growth of the ABS market in the USA, Europe and Asia. 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.