This one-day introductory workshop provides an overview of securitization and a framework for evaluating ABS.
2010 Early Bird Offer - 2nd person 25% discount.
If you register 8+ weeks before the course date, the 2nd person gets a 25% discount.
*Terms and conditions apply.
Course Objectives
Participants will be equipped to:
- Use a structured approach to understand ABS (using credit card ABS as the illustration asset class): basic transaction structures, roles of the parties, and originator motivations
- Recognize the main risks pertaining to the collateral, originator and servicer
- Appreciate how asset characteristics and desired ratings impact credit enhancement levels
- Identify key risks and understand how they are allocated within ABS structures
- Review various government and private sector programs including TALF.
Target Audience
An introductory workshop for those new to the securitization market or seeking an understanding of the ABS product.
Fitch Training offers this programme at an introductory level. There are no prerequisite courses or knowledge to attend this course.
The majority of Fitch Training programmes are offered at an intermediate and advanced level. There are no specific prerequisite courses to attend our programmes, however some topic knowledge maybe required. Please refer to the target audience to see what level of prior knowledge is required for a specific course.
Content
INTRODUCTION
- Why securitization? Originator and investor motivations
- Parties to the transaction and their roles
- Overview of securitization market.
PURPOSE: PAYBACK
Analytic approach to credit
- Introducing a structured approach to analysis: purpose, payback, risk and structure
- Application of the structured approach to various types of ABS securities.
RISKS TO REPAYMENT
Collateral
- Analytic focus: credit card ABS
- Key performance variables: applying steady state assumptions and credit stresses
- Understanding how credit enhancement is sized
- Modelling the impact of various stress scenarios across different credit card portfolios
Originator / servicer evaluation
- Company analysis: commercial and financial viability
- Risks arising from the business model
- Servicer ratings: why, how and impact on credit enhancement
Structure
Credit enhancement (CE)
- Understanding the role and various forms of CE
- Unravelling CE across asset classes (credit card, auto, and mortgage transactions)
- Clarifying loss allocation
- Safeguards: ensuring credit enhancement mechanisms provide adequate protection
Note Profile
- Cash-flow waterfalls: Amortizing and non-amortizing assets
- Cash flow allocation mechanics
- Trust structures: master, owner and issuance
- Early amortization triggers: how they are set and how they operate
Legal Safeguards
- Key legal safeguards: isolation of assets
- Reps and warranties.
MONITORING PERFORMANCE
- Surveillance: collateral, originator / servicer
- Interpreting performance to identify early warning signals
- Overview of performance across asset classes.
RELATIVE VALUE
- Pricing of ABS transactions: risk vs. return
- Credit trends in ABS: pockets of risk.
Workshop Times
Below are typical timings for our courses; upon registration we shall advise you if these have changed.
Breakfast: 8.30am
Course Start: 9.00am
Course End: Between 5.00pm and 5.30pm
Lunch starts between 12.30pm and 1.00pm, and lasts no longer than 1 hour.
Short breaks of 10 - 15 minutes are taken mid morning and mid afternoon.
*Terms and Conditions:
This applies only to two people from the same company registering for the same course on the same dates at the same time. The on-line registration form must be submitted 8+ weeks before the course start date. This offer is only applicable to new registrations, it cannot be applied retrospectively to existing participants and no refunds will be given. It can not be used in conjunction with any other offer.