The Mechanics Of Securitization: A Practical Guide To Structuring And Closing Asset-Backed Security Transactions

While securitization is a well established practice N in the global debt capital markets. And while the market in structured finance securities was hit hard by the 2007 2008 financial crisis-when investors shunned asset backed securities-interest in securitization has resumed as the global economy recovers.

The Mechanics of Securitization is an accessible and practitioner oriented look into what is required to successfully structure and close asset backed security transactions in today's complex financial markets. The text is aimed at practitioners in structured finance who are involved with originating, structuring, or arranging securitization transactions. It addresses the necessary tasks for commercial banks that are interested in closing a securitization of assets off their own balance sheet or a third party balance sheet whether these assets are corporate loans, mortgages, credit card loans, or other more esoteric "future flow" cash receivables.

The text is aimed at providing a step by step guide to the process undertaken to arrange, structure, and close a securitization deal, and includes insights on the rating agency and legal review requirements. The template used applies to cash transactions in asset backed securities, mortgage backed securities, and corporate loan deals. Details of a cash flow waterfall model are also discussed. Using an actual securitization transaction as its background, the book also features a series of checklists and pro forma documents to illustrate the process of structuring a typical loan ABS or CLO transaction.

Suleman Baig works with the credit structuring team at Deutsche Bank AG in London. He has extensive experience dealing with first time issuers and has structured a number of securitization transactions (both agency and principal) in a variety of asset classes and jurisdictions. Suleman graduated with a degree in mathematics from the London School of Economics.
Moorad Chow is Treasurer, Corporate Banking Division at the Royal Bank of Scotland, and visiting professor in the Department of Mathematical Sciences, Brunel University. He is on the editorial board of the Journal of Structured Finance and a member of the editorial advisory board of American Securitization.