Book

Securitization: The Financial Instrument of the Future - Kothari

Synthetic securitization and structured products are revolutionizing the financial industry and changing the way banks, institutional investors, and securities traders do business both domestically and globally. Written by a top international trainer and expert on securitization, this book is an ideal way for all market practitioners, whether investors, bankers, or analysts, to ensure they understand the ins and outs of this practice.

Securitization is one of the most important financial instruments of our times. Since its beginnings in the 1970s, it has helped banks and companies raise almost US$7 trillions of dollars globally, revolutionized the financial industry, and changed the way banks, institutional investors and securities traders do business both domestically and globally.

While potentially beneficial, these important instruments are complex structures that are often misunderstood and frequently mishandled.

Securitization: The Financial Instrument of the Future is a focused resource complete with global case studies on how securitization works, and how best to capitalize on it. It brilliantly brings together the complex array of issues that help hinder and affect the securitization business.

The book explains securitization techniques in lucid details and includes comprehensive coverage on multi-faceted issues relating to securitization, easy to understand explanations of complex topics, and international case studies to illustrate different aspects of securitization.
  • Level: Basic
  • Major Topics: T41, T42, T43, T44
  • Minor Topics: T33, T45, T46

Resources

Book Resources

CD Rom with worksheets that illustrate cash-flow modeling, prepayment projection, accounting treatment, investor analysis, etc

Table of Contents

Part 1: Securitization: Concepts & Markets
1. Securitization and structured finance
2. Securitization: Methodology, structures, Motivators and Demotivators
3. The world of securitization

Part II: Financial substance and Ratings
4. Structuring and credit-enhancing securitization transactions
5. Understanding the nature and risks of asset-backed securities.
6. Understanding prepayment risk in asset backed securities
7. Understanding default risk in asset backed securities
8. Cashflow modeling for asset-backed securities
9. Securitization: Financial evaluation for the originator
10. Investor evaluation of asset-backed securities
11. Rating of securitization transactions

Part III: Securitization: Asset classes and applications
12. Residential mortgage-backed securitization
13. Commercial mortgage-backed securitization
14. Credit cards securitization
15. Auto loan securitization
16. Equipment Lease Securitization
17. Collateralized Debt Obligations
18. Asset-backed commercial paper
19. Future flows securitization
20. Whole business and operating revenues securitization
21. Other miscellaneous asset classes
22. Synthetic securitization and other risk transfer devices

Part IV: Technical and Operational Aspects
23. Legal issues in securitization
24. Legal documentation for securitization
25 Operational issues in securitization
26 Tax issues in securitization
27. Accounting for securitization
28. Regulation AB: Securities regulation on asset-backed securities
29. Regulatory and economic capital in securitization

Part V Investing in Asset-backed Securities
30. Investing in securitization instruments…read more