Asset Securitization Training

60 Hours / 3 Months / Mentor Supported

Course Overview:

Asset Securitization (AS) has revolutionized the field of finance. It provides an opportunity for financial institutions to enhance liquidity, generate fee-based income and optimize the usage of capital. It can be a source of competitive financing for corporations. For investors, securitized assets offer additional investment opportunities with different risk/return trade-offs.

Course Outline:

Overview: This course gives an introduction to asset securitization and its process and the different entities involved in securitization. It helps the user understand:
  • Process of asset securitization
  • Cash flows in asset securitization
  • Benefits to different entities in Asset securitization
  • Global scenario of asset securitization
Credit Enhancement: Topics covered include:
  • Fundamentals of credit enhancement
  • Types of credit enhancement
  • Companies providing credit enhancement
  • Calculating credit enhancement
Ratings Approach to Asset Securitization: This course explains the process of rating the asset  backed securities. It helps the user understand:
  • Credit rating in asset securitization
  • Various concerns of rating agencies            
  • A generalized approach used by rating agencies
Residential Mortgage Backed Securities – Basics: Topics covered include:
  • Basics of Mortgage backed securities
  • Federally sponsored mortgage securities
Residential Mortgage Backed Securities – Prepayments: Topics covered include:
  • Concept of prepayment
  • Different prepayment standards
Residential Mortgage Backed Securities - Basic Structures: Topics covered include:
  • Pass Through Securities
  • Pay Through Securities
Residential Mortgage Backed Securities - Complex Structures: This course gives an introduction to Mortgage Backed Securities (MBS) and its features.Topics covered include:
  • Planned Amortization Class
  • Targeted Amortization Class
  • Stripped Mortgage Backed Securities
  • Floaters
  • CMO Residuals
Mortgage Backed Securitization (Commercial): This course gives an introduction to Commercial Mortgage Backed Securities (CMBS) and its features. Topics covered include:
  • Differences between residential and commercial mortgages
  • Elements and features of a typical CMBS
  • Commercial loan evaluation and rating process
Auto Loan Receivables Securitization: This course gives an introduction to Auto Loan Receivables Securitization and its structure. Topics covered include:
  • Types of auto loans originated and securitized
  • Structure of auto loan backed securities
  • Features of trust structures
  • Rating process in auto loan securitization
  • Significant aspects of securitization for first time securitizers
Credit Card Receivables Securitization: This course gives an introduction to Credit Card Receivables Securitization and its process and features.Topics covered include:
  • Fundamentals of Credit Card Receivables
  • The structure of Credit Card Receivables transaction
  • Securitization process
  • Various measures of maturity
  • Concepts of Interchange and Early Amortization
  • Rating process for credit card receivables securitization
Collateralized Debt Obligations: This course gives an introduction to Collateralized Debt Obligations (CDOs).Topics covered include:
  • Fundamentals of CDOs
  • Balance Sheet Vs. Arbitrage CDOs
  • Cash Flow Vs. Market Value Structures
  • Synthetic Structures
  • Motivations behind CDOs
  • Rating Process
  • Role of Asset Manager
  • Distinction between CBOs and CLOs
Case Studies (CDOs, CLOs, CBOs): This course explains the practical aspects of collateralized obligations, its structure and design with the help of case studies. It discusses the following case studies:
  • Jubilee CDO I B.V
  • ROSE Transaction
  • SBC Glacier Transaction
  • Panther CDO II B.V
Future Flow Receivables Securitization: Topics covered include:
  • The basics of future flow receivables securitization
  • Reasons for future flow receivables securitization
  • Risks involved
  • Securitization of airline ticket receivables
  • Securitization of export receivables
Home Equity Loans: This course explains Securitization of Home Equity Loans with case studies. It helps the user understand:
  • Fundamentals of Home Equity Loans
  • Types of Home Equity Loans
  • Pros & Cons of Home Equity Loans
  • Securitization of Home Equity Loans
  • Structures based on credit enhancement
Insurance Risk Securitization-II: This course gives an introduction to the concept of Catastrophe (CAT) Bonds and the process.Topics covered include:
  • CAT Bonds
  • Issuance of CAT Bonds
  • Probabilities and Cash Flows of CAT Bonds
  • Types of Insurance Risk Structures
Case Studies (Non-Performing Loans): This course gives an introduction to securitization of non-performing loans. It discusses the following case studies:
  • Korea Asset Funding 2000-1 Limited (KAMCO)
  • Ariosto S.r.l
  • Danaharta
  • Japan II Ltd.
Case Studies (Different Products): This course introduces the user to a few other products that can be securitized. It deals with case studies of products like:
  • Trade receivables securitization
  • Equipment lease securitization
  • Inventory securitization
  • Dealer floorplan receivables securitization
Case Studies (Asia and Australia): This course discusses the following case studies from Asia and Australia:
  • LG Card
  • Pemex Finance Ltd.
  • Pemex Finance Ltd.
  • RAMS Mortgage Corp. Ltd. Series 11
  • Series 2002-1G Medallion Trust
Case Studies (North America and Europe): This course discusses the following case studies from North America & Europe,the largest markets in terms of securitization:
  • Wells Fargo Student Loans Receivables I LLC
  • BEC Funding LLC
  • Ares Finance S.r.l.
Healthcare Receivable Securitization: This course gives an introduction to securitization of healthcare receivables securitization. It discusses the following:
  • Concepts of healthcare receivables
  • The case of National Century Financial Enterprise
Asset Backed Commercial Paper: This course gives an introduction to Asset Backed Commercial Paper (ABCP) conduits. It helps the user understand:
  • Fundamentals of ABCP conduits
  • Key parties to a transaction
  • The risks faced by ABCP investors and methods to mitigate them
  • Assets securitized through ABCP conduits
  • Legal issues associated with ABCP conduits
Project Management: Topics covered include:
  • An outline of various components of a basic asset securitization policy statement
  • Project Plan for Credit Card Responsibility Delegation
  • Project Plan for Auto Loans Responsibility Delegation
Risk Management: Topics covered include:
  • The risks involved in asset securitization
  • Nature of these risks
  • Methods to manage each risk
  • General risk management measures
  • Risk-based capital requirements
Legal Aspects: Topics covered include:
  • The importance of ownership and title to the collateral involved in securitization transactions
  • The importance of establishing priority in having recourse against the collateral
  • The bankruptcy issues and the consequent reforms in the United States
  • The procedures for ABS issue as under the United States laws
  • The UN convention on Assignment of Receivables
Accounting: This course discusses the accounting aspect of asset securitization and the laws governing this issue. It helps the user understand:
  • Accounting for Asset Securitization under FAS 140
  • Sale and loan treatment
  • Gain or loss on sale accounting
  • Investor Accounting
  • Bank Regulatory Capital Relief
  • International Accounting Standard: IAS 39
Tax: Topics covered include:
  • Taxation of different participants in the securitization process
  • Tax issues in select countries
  • Applicability of Withholding Tax
  • Relevant aspects of The U.S. FASIT Law
Supervision: Topics covered include:
  • Office of the Comptroller of the Currency
  • Federal Deposit Insurance Corporation
  • Federal Reserve System
  • Interagency guidance on asset securitization activities

All necessary materials are included.

System Requirements:

Internet Connectivity Requirements:
  • Cable and DSL internet connections are recommended.

Hardware Requirements:
  • Minimum Pentium 400 Mhz CPU or G3 Macintosh. 1 GHz or greater CPU recommended.
  • 256MB RAM minimum. 1 GB RAM recommended.
  • 800x600 video resolution minimum. 1025x768 recommended.
  • Speakers/Headphones to listen to Dialogue steaming audio sessions.
  • A microphone to speak in Dialogue streaming audio sessions.
Operating System Requirements:
  • Windows Vista, 7, 8, 8.1, 9, 10
  • Mac OSX 10 or higher.
  • OpenSUSE Linux 9.2 or higher.
Web Browser Requirements:
  • Google Chrome is recommended.
  • Firefox 13.x or greater.
  • Internet Explorer 6.x or greater.
  • Safari 3.2.2 or greater.
Software Requirements:
  • Adobe Flash Player 6 or greater.
  • Oracle Java 7 or greater.
  • Adobe Reader 7 or greater.
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  • Accept Cookies
  • Disable Pop-up Blocker.

**Outlines are subject to change, as courses and materials are updated.**