Smart About Risk  
Securitization

Securitization

The seminar Securitization is organized as an open seminar for employees from different institutions and also as an in-house seminar organized for employees of clients with tailor made requirements.

Objectives of the seminar

The seminar will inform participants about the principles of securitization, reasons why it is done, differences between traditional and synthetic securitization and will guide them through the entire transaction. Participants will be informed about specific actions of individual parties to the transaction, mainly: the original owner of the assets (originator), the trustee, the insurer, rating agencies and investors. Participants will work through an explanation of an example from practice on the principle of different seniority of tranches and the so called ‘waterfall’. An integral part of the seminar is an introduction to the principles of valuation of individual tranches.

Seminar content 

  1. Introduction to structured finance
  2. Introduction to securitization
  3. Essence of securitization
  4. Types of underlying assets
  5. Incentives for asset securitization
  6. Sale of assets vs. securitization
  7. Mechanism of risk transfer
  8. Rating assessment
  9. Valuation principles applicable to securitized assets
  10. Challenges in investing into asset backed securities
  11. Advantages and disadvantages of securitization
  12. Capital requirement for securitization
  13. Securitization and its connection with the financial crisis or why to invest into something we do (not) understand?
Currently no open seminar is organized. If you are interested in this topic please contact us and we will be delighted to prepare an in-house seminar for you.