{"product_id":"the-mechanics-of-securitization-isbn-9780470609729","title":"The Mechanics of Securitization","description":"\u003cb\u003eA step-by-step guide to implementing and closing securitization transactions\u003c\/b\u003e  \u003cp\u003eSecuritization is still in wide use despite the reduction in transactions. The reality is that investors and institutions continue to use this vehicle for raising funds and the demand for their use will continue to rise as the world's capital needs increase.\u003c\/p\u003e \u003cp\u003e\u003ci\u003eThe Mechanics of Securitization\u003c\/i\u003e specifically analyzes and describes the process by which a bank successfully implements and closes a securitization transaction in the post subprime era. This book begins with an introduction to asset-backed securities and takes you through the historical impact of these transactions including the implications of the recent credit crisis and how the market has changed.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eDiscusses, in great detail, rating agency reviews, liaising with third parties, marketing the deals, and securing investors\u003c\/li\u003e \u003cli\u003eReviews due diligence and cash flow analysis techniques\u003c\/li\u003e \u003cli\u003eExamines credit and cash considerations as well as how to list and close deals\u003c\/li\u003e \u003cli\u003eDescribes the process by which a bank will structure and implement the deal, and how the process is project managed and tested across internal bank departments\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eWhile securitization transactions have been taking place for over twenty-five years, there is still a lack of information on exactly how they are processed successfully. This book will put you in a better position to understand how it all happens, and show you how to effectively implement an ABS transaction yourself.\u003c\/p\u003e \u003cp\u003eForeword xi\u003c\/p\u003e \u003cp\u003ePreface xv\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart One Introduction to Securitization 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Introduction to Securitization and Asset-Backed Securities 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Concept of Securitization 4\u003c\/p\u003e \u003cp\u003eThe Process of Securitization 7\u003c\/p\u003e \u003cp\u003eSecuritizing Mortgages 14\u003c\/p\u003e \u003cp\u003eABS Structures: A Primer on Performance Metrics and Test Measures 18\u003c\/p\u003e \u003cp\u003eSecuritization: Features of the 2007–2008 Financial Crisis 24\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 33\u003c\/p\u003e \u003cp\u003eReferences 34\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 The Securitization Market Post-2007 35\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMarket Observation 35\u003c\/p\u003e \u003cp\u003eImpact on Rating Agencies 40\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 42\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Two Guide to Closing a Securitization Transaction 45\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Structuring and Execution of a Transaction 47\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Securitization Process 47\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 69\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 The Rating Agency Process and Legal Review 71\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSelect Rating Agencies 71\u003c\/p\u003e \u003cp\u003eUndertaking Legal Due Diligence 73\u003c\/p\u003e \u003cp\u003eBegin Drafting Documents 78\u003c\/p\u003e \u003cp\u003eSet Up the SPV 82\u003c\/p\u003e \u003cp\u003eModeling the Transaction 85\u003c\/p\u003e \u003cp\u003eDetermine Capital Structure\/Trigger Levels 90\u003c\/p\u003e \u003cp\u003ePrepare Marketing Materials 96\u003c\/p\u003e \u003cp\u003ePricing, Close, and Settlement 98\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 99\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Static Synthetic CDO Cash Flow Waterfall Model 101\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 107\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Three Transaction Closing Templates and Checklists 111\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Transaction Templates and Checklists 113\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRed Sea Master Series Limited Structure Diagram 113\u003c\/p\u003e \u003cp\u003eUnderlying Asset Pool 113\u003c\/p\u003e \u003cp\u003eDraft Term Sheet 120\u003c\/p\u003e \u003cp\u003eClosing Process 126\u003c\/p\u003e \u003cp\u003eStructuring Notes 127\u003c\/p\u003e \u003cp\u003eRating Agency Preparation and Questionnaire 129\u003c\/p\u003e \u003cp\u003eLoan-Level Data: Rating Agency Checklist 138\u003c\/p\u003e \u003cp\u003eAgenda for Rating Agency Site Visit 140\u003c\/p\u003e \u003cp\u003eLegal Counsel Review 140\u003c\/p\u003e \u003cp\u003eForm of Transfer Certificate 144\u003c\/p\u003e \u003cp\u003eInvestor and Rating Agency Presentation Template 147\u003c\/p\u003e \u003cp\u003eIn-House Credit Rating Mapping Chart: Lower and Upper Values 149\u003c\/p\u003e \u003cp\u003eRating Agency Presentation: Corporate Bank Origination Processes 149\u003c\/p\u003e \u003cp\u003eLoan Transfer Schedule of Tasks 154\u003c\/p\u003e \u003cp\u003eLoan Transfers, Accounting Movements 158\u003c\/p\u003e \u003cp\u003eSign-Off Document: Securitization Project 160\u003c\/p\u003e \u003cp\u003eSecuritization Testing: Finance Department 161\u003c\/p\u003e \u003cp\u003eAccounting Process on Closing 166\u003c\/p\u003e \u003cp\u003eEUR Junior Tranche Trade Ticket 167\u003c\/p\u003e \u003cp\u003eSenior Tranche Trade Ticket 168\u003c\/p\u003e \u003cp\u003eInternal Transfer Booking Process 169\u003c\/p\u003e \u003cp\u003eQuestions from Trustee, Paying Agent, and Services Provider 169\u003c\/p\u003e \u003cp\u003eSummary and Conclusions 172\u003c\/p\u003e \u003cp\u003eAbout the Authors 173\u003c\/p\u003e \u003cp\u003eIndex 175\u003c\/p\u003e \u003cp\u003e\u003cb\u003eSULEMAN BAIG\u003c\/b\u003e 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. \u003c\/p\u003e\u003cp\u003e\u003cb\u003eMOORAD CHOUDHRY\u003c\/b\u003e 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 \u003ci\u003eJournal of Structured Finance\u003c\/i\u003e and a member of the editorial advisory board of \u003ci\u003eAmerican Securitization\u003c\/i\u003e.\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eTHE MECHANICS OF SECURITIZATION\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSecuritization is a well-established practice 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. \u003c\/p\u003e\u003cp\u003e\u003ci\u003eThe Mechanics of Securitization\u003c\/i\u003e 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. \u003c\/p\u003e\u003cp\u003eThe 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.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990286418149,"sku":"NP9780470609729","price":100.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470609729.jpg?v=1761787207","url":"https:\/\/k12savings.com\/es\/products\/the-mechanics-of-securitization-isbn-9780470609729","provider":"K12savings","version":"1.0","type":"link"}