Fabozzi / Kothari Introduction to Securitization

1. Auflage 2008
ISBN: 978-0-470-40327-3
Verlag: John Wiley & Sons
Format: PDF
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 384 Seiten, E-Book

Reihe: Frank J. Fabozzi Series

Introduction to Securitization outlines the basics ofsecuritization, addressing applications for this technology tomortgages, collateralized debt obligations, future flows, creditcards, and auto loans. The authors present a comprehensive overviewof the topic based on the experience they have gathered throughyears of interaction with practitioners and graduate studentsaround the world. The authors offer coverage of such key topics as:structuring agency MBS deals and nonagency deals, creditenhancements and sizing, using interest rate derivatives insecuritization transactions, asset classes securitized, operationalrisk factors, implications for financial markets, and applyingsecuritization technology to CDOs. Finally, in the appendices, theauthors provide an essential introduction to credit derivatives, anexplanation of the methodology for the valuation of MBS/ABS, andthe estimation of interest rate risk.
Securitization is a financial technique that pools assetstogether and, in effect, turns them into a tradable security. Theend result of a securitization transaction is that a corporationcan obtain proceeds by selling assets and not borrowing funds. Inreal life, many securitization structures are quite complex andenigmatic for practitioners, investors, and finance students.Typically, books detailing this topic are either too lengthy, tootechnical, or too superficial in their presentation. Introductionto Securitization is the first to offer essential information onthis topic at a fundamental, yet comprehensive level-providingreaders with a working understanding of what has become one oftoday's most important areas of finance.
Authors Frank Fabozzi and Vinod Kothari, internationallyrecognized experts in the field, clearly define securitization,contrast it with corporate finance, and explain its advantages.They carefully illustrate the structuring of asset-backedsecurities (ABS) transactions, including agency mortgage-backedsecurities (MBS) deals and nonagency deals, and show the use ofcredit enhancements and interest rate derivatives in suchtransactions. They review the collateral classes in ABS, such asretail loans, credit cards, and future flows, and discuss ongoingfunding vehicles such as asset-backed commercial paper conduits andother structured vehicles. And they explain the different types ofcollateralized debt obligations (CDOs) and structured credit,detailing their structuring and analysis. To complement thediscussion, an introduction to credit derivatives is alsoprovided.
The authors conclude with a close look at securitization'simpact on the financial markets and the economy, with a review ofthe now well-documented problems of the securitization of one assetclass: subprime mortgages. While questions about the contributionof securitization have been tainted by the subprime mortgagecrisis, it remains an important process for corporations,municipalities, and government entities seeking funding. Thesignificance of this financial innovation is that it has been animportant form of raising capital for corporations and governmententities throughout the world, as well as a vehicle for riskmanagement. Introduction to Securitization offers practitioners andstudents a simple and comprehensive entry into the interestingworld of securitization and structured credit.

Autoren/Hrsg.

Fabozzi, Frank J.

Kothari, Vinod

Inhaltsverzeichnis

Preface.
About the Authors.
Part One. Background.
Chapter 1. Introduction.
Chapter 2. Issuer Motivation for Securitizing Assets and theGoals of Structuring.
Part Two. Structuring ABS Transactions.
Chapter 3. Structuring Agency MBS Deals.
Chapter 4. Structuring Nonagency Deals.
Chapter 5. Credit Enhancements.
Chapter 6. Use of Interest rate Derivatives in SecuritizationTransactions.
Chapter 7. Operational Issues in Securitization.
Part Three. Review of ABS Collateral.
Chapter 8. Collateral Classes in ABS: Retail Loans.
Chapter 9. Asset-Backed Commercial Paper Conduits and OtherStructured Vehicles.
Chapter 10. Securitization of Future Cash Flows:Future Revenues,Operating Revenues, and Insurance Profits.
Part Four. Collateralized Debt Obligations.
Chapter 11. Introduction to Collateralized Debt Obligations.
Chapter 12. Types of Collateralized Debt Obligations.
Chapter 13. Structuring and Analysis of CDOs.
Part Five. Implications for Financial Markets.
Chapter 14. Benefits of Securitization to Financial Markets andEconomies.
Chapter 15. Concerns with Securitization's Impact onFinancial Markets and Economies.
Appendix A. Basics of Credit Derivatives.
Appendix B. Valuing Mortgage-Backed and Asset-BackedSecurities.
References.
Index.

Über Autor(innen)

Frank J. Fabozzi, PhD, CFA, CPA, is Professor in the Practice ofFinance at Yale University's School of Management, Editor of theJournal of Portfolio Management, and Associate Editor of theJournal of Structured Finance and the Journal of Fixed Income.
Vinod Kothari, chartered accountant, is an author, trainer, andconsultant on securitization, asset-based finance, creditderivatives, and derivatives accounting. Kothari is a visitingfaculty member at the Indian Institute of Management, where heteaches structured finance.