Archive for the ‘Securitization’ Category

What is Securitization?

Sunday, February 21st, 2010

Securitizations Debunked…

[youtube]http://www.youtube.com/watch?v=ZYmRn6H80qs[/youtube]

~I.S.

Securitization & CDOs Explained…

Sunday, February 21st, 2010

Securitization & CDOs explained…

[youtube]http://www.youtube.com/watch?v=VB9Sm2CzXB4[/youtube]

~I.S.

New Securitization – ABS is BACK

Wednesday, December 23rd, 2009

ABS

It has taken two long years, but the securitization market is back and deals are being underwritten with and without government backing.  One of the biggest risks to date is the risk of over-regulation.  If this form of financing is no longer attractive to investors, it will have negative affects to consumer ABS performance.

New regulations include accounting rules that require off balance sheet transactions to move back onto a lender’s financial statements.  This will worsen on book leverage ratios and will lead to increased capital requirements.  One regulation in question will require at least 5% of performance risk in securitized loans to remain on a bank’s balance sheet, according to President Obama.

2009 saw $135 billion in issuances, sold with the help of the Federal Reserve’s emergency loan program.  In 2010, $100 billion of credit card securities will mature and companies will turn back to the market to refinance the debt.

Please refer to Reuters for more information…