Asset Securitization Training

Hours: 60 / Access Length: 3 Months / Delivery: Open, Mentor Supported
Retail Price: $425.00

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. This course presents an introduction to asset securitization, credit enhancement, and helps you understand the ratings approach to Asset Securitization.  Topics presented are extensive. Please visit our course description online for more information.

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.
• LIBRAVOU FL3

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:

• Cable and DSL internet connections are recommended for the best experience.

• CPU: 1 GHz or higher
• RAM: 2 GB or higher
• Resolution: 1280 x 720 or higher
• Speakers / Headphones
• Microphone (Webinar / Live Online sessions)

• Microsoft Windows 7 or 10 (Home, Pro)
• Mac OSX 10 or higher.
• Latest Chrome OS
• Latest Linux Distributions

NOTE: While we understand that our courses can be viewed on Android and iPhone devices, we do not recommend the use of these devices for our courses. The size of these devices do not provide a good learning environment for students taking online or live online based courses.

• Latest Google Chrome is recommended for the best experience.
• Latest Mozilla FireFox
• Latest Microsoft Edge
• Latest Apple Safari

• Office suite software (Microsoft Office, OpenOffice, or LibreOffice)
• PDF reader program (Adobe Reader, FoxIt)
• Courses may require other software that is denoted in the above course outline.