Isolating Securitized Assets From the Credit and Operating Risk of Originating Banks and Their Affiliates

Topics:
Commercial Banking,
Commercial Lending,
Enterprise Risk Management
Tags:
Asset,
Securitization,
Risk,
Operational Planning,
Management,
Goodwin Procter,
Financial Services,
Business Operations,
Banking,
Bank,
...
Source:
Goodwin Procter

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Overview: A central objective of securitization is to de-link the risks inherent in the securitized assets from the operating and credit risk of the sponsor. Typically this involves structuring designed. This article discusses some of the principal issues related to the achievement of such delinkage in the context of securitizations by banking institutions. It describes the basis on which, and the extent to which, securitized assets may be shielded from claims of the sponsor's creditors in the event of its insolvency. It also discusses certain non-insolvency related principles that are important to the integrity of structures, notably the rules governing transactions with affiliates and principles of safety and soundness.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 665KB | Date: Apr 2005 | Pages: 16


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