SECURITISATION ARTICLES

[This page promises to be a comprehensive collection of articles on securitisation - we are constantly building it up, and you will find here something new, and something of interest, every time you visit.]

History of Securitization

• The Capital Market before 1600 This interesting research shows that sale of rent emerging out of rent existed in France in the 12th Century and it was not regarded as a loan but a sale - article by Meir Kohn - it is a PDF file and will open with Adobe Acrobat reader click here
• Jure Skarabot's article on securitization and SPV structures contains a historical note contending securitization started off in Italy 1432: click here

• Securitization: The Tool of Financial Transformation by Frank Fabozzi and Vinod Kothari on SSRN Click here.
• History and Overview of Securitization by American Securitization Forum - this is actually a testimony but would serve as a brief and good first reading on what is securitization. Click here.
• Investors' Guide to Asset backed Securities : a comprehensive, very easy reading narrative by Bond Markets Association - click here
• Securitisation - a Primer by Vinod Kothari. This is a Chapter from an earlier edition Vinod Kothari's book on securitisation. Click here.
• Investors' Guide to Asset backed Securities : a comprehensive, very easy reading narrative by Bond Markets Association - click here
• Introduction to MBS by Fannie Mae: A comprehensive investor-oriented introduction to MBS by the world's most renowned MBS agency Click here
• Introduction to Securitization - A comprehensive write-up by Tim Nicolle. Click here.
• Speaking of Securitization: This article by Sunil Gangwani discusses the motivations in securitization from issuers' perspective, legal tax and accounting implications and securitization structures broadly. A very readable article for a quick digesting of securitization. [PDF format] Click here to read.
• MBS Structuring:Concepts and Techniques- This article by Sunil Gangwani is a very easy-to-read and interesting text on MBS structures and credit enhancement devices. It gives a comparison of different devices for credit enhancement being used. [ PDF file] Click here for full text.
• Securitization of Financial Assets - Timothy C. Leixner, Esq. explains the basics of securitization, briefly about the process, documentation required, a quick guide to jargon. . Click here
• Strategic Uses of Securitization and Structured Finance -a very comprehensive write up securitization by Prof. Joseph F. Sinkey, Jr., Edward W. Hiles Professor of Financial Institutions Department of Banking and Finance Terry College of Business The University of Georgia - click here

Structuring of MBS/ ABS

• Article on structuring of ABS in US market: click here

Securitisation: Investor Perspective

• Introduction to MBS by Fannie Mae: A comprehensive investor-oriented introduction to MBS by the world's most renowned MBS agency Click here
• Investors' Guide to Asset backed Securities : a comprehensive, very easy reading narrative by Bond Markets Association - click here
• Thrifts supervisory guide on Due Diligence in Investing in Complex securities including CMOs, CLOs, CBOs, etc: On Thrifts Supervisory website - click here

• Added 14th Jan 2003
  Article by Rainmaker Marketing on Royalty Limited Partnerships, a new concept on asset-backed funding click here
• Securitisation by industrial firms: Article by Bernadette Minton, Tim Opler, and Sonya Stanton on why industrial firms prefer to securitize their assets when they can issue plain debt instruments. Click here to read a full copy of the article.

• Aircraft Lease Securitization: ALPS to EETCs- Article by William C. Bowers. This article explains the portfolio securitisation and the enhanced equipment trust certificate technology for aircraft lease securitisation. Click here for a full text.

• See our page here

• Article by Prof. Steven Schwarcz on Simplifying Securitisation via Cross-Border Receivable Financing (on GTNews) click here
• CROSS-BORDER SECURITIZATION: WITHOUT LAW, BUT NOT LAWLESS by TAMAR FRANKEL http://www.law.duke.edu/shell/cite.pl?8+Duke+J.+Comp.+&+Int'l+L.+255

• The Universal language of Cross-border finance by Prof. Steven L Schwarcz: This article, published originally in Duke Journal of Comparative and International Law (reproduced here with the permission of the author) is a meticulous write up on all issues concerning cross border securitisation, profusely enriched by references to various sources. Click here.

• Securitization of Future Flow Receivables: A Useful Tool for Developing Countries : an article by Suhas Ketkar and Dilip Ratha, researchers at the IMF reviewing future flow securitisations and their potential for developing countries -click here.
• Also see our page on future flow securitization here.

• Islamic securitisation: article by Fath Salih from Sudan on this site - click here
• Islamic securitisation practical aspects by Mr. Suleiman ABDI DUALEH: click here
  
• Islamic securitisation: Basis and Prospects. This comprehensive write up on Islamic finance principles in their application to securitisation The article consists of write ups on salam, istisna, ijara, and muqarada written by Islamic experts. The article is taken from Ahmad, Ausaf and Khan, Tariqullah eds., (1998), Islamic Financial Instruments for Public Sector Resource Mobilization, Jeddah: IRTI Click here to read.

Synthetic securitisation

• Number of article links appear on our page on CDOs - click here

• Article by Vinod Kothari and Abhishek Gupta on Potentials and Promotion of RMBS in India
• Securitization of US Mortgage markets: Progress, Pitfalls and Lessons for Japan: A thought-provoking article by Kerry D. Vandell tracing the history of US mortgage markets and also some of sad episodes such as Orange County, LTCM, etc. - click here
• MBS Structuring:Concepts and Techniques- This article by Sunil Gangwani is a very easy-to-read and interesting text on MBS structures and credit enhancement devices. It gives a comparison of different devices for credit enhancement being used. Click here for full text.
• Issues in Securitized Mortgage Lending by Gregory P. Pressman - click here

• Article by by THOMAS W. ALBRECHT AND SARAH J. SMITH

• Article on Cat bonds and their relevance after 9-11: by: Norman Menachem Feder - click here
• Law of Insurance risk securitization by Tamar Frankel and Joseph LaPlume: Commentary by Vinod Kothari -This is a brief abstract as also my comments on the authors' very readable article on the law of insurance risk securitization. click here
• Alternative Risk Transfer Research from Wilde Sapte. This comprehensive research on alternative risk transfer, that is, transfer of risk other than through traditional insurance, has been made by Wilde Sapte based on surveys. Reproduced with permission. A most readable document on ART. Click here to read.
• Alternative Insurance Market - A primer - This article Gregory K. Myers is a lucid introduction to the fast growing world of alternative risk transfer mechanism. The author explains captive insurance, rent-a-captive and transfer of insurance risk through capital markets. A very useful article on a most pertinent subject. Click here to view the full text.
• Several articles are listed on our focused page on Insurance securitisation - click here.
  

Securitization of non-performing assets:

• Securitization of Non performing loans in Japan by Edward I Altman and Others - This extensive article reviews the securitization environment in Japan and makes a strong case for securitization of non-performing assets. The article will open with Adobe Acrobat reader Click here
• Several links on NPL securitization are there on our page on NPL securitization here.

Securitization of future flows:

• Future flow securitisation in Asia : An article by Clive Rough of Freshfields Click here.
• Several articles on future flow securitisation on our page here.

Other asset classes:

Article on Equipment Lease securitisation in the USA by Peter Humphreys and Howard Sullivan

• Securitization is Illegal - in this interesting article, MICHAEL NWOGUGU argues that securitization violates several principles of constitutional law, anti-trust law, etc., and is therefore illegal in the USA
• A Cadwalader article that succinctly sums legal issues in US securitization
• Isolating Securitized Assets from Credit and Operating Risks of Originators - article by Anthony Nolan April 2005
• IFC publication on Securitization: Key Legal and Regulatory Issues
• Article by Prof Steven Schwarcz on Role of Legal Opinions in structured finance - an extremely articulate article from leading authority on legal issues in securitization
• Three articles by Prof Steven Schwarcz [Prof Steven's biography, see here]
  • Enron and the Use and Abuse of Special Purpose Entities in Corporate Structures
  • Securitization Post-Enron
  • Rethinking the Disclosure Paradigm in a World of Complexity

• Recommendations of the Boston Consulting group on appropriate legal structure for securitisation for Germany
• Originator Insolvency: The Ultimate Test for US Securitisation- article by Dey, Berry and Howard
• Some legal rulings relating to commercial real estate and securitisation on ABI website- click here
• Article by Prof. Steven Schwarcz on Simplifying Securitisation via Cross-Border Receivable Financing (on GTNews) click here
• Article by Prof. Steven Schwarcz on Bankruptcy Reform Act relating to securitization transactions [word format]- click here
• Treatment of Securitized Transactions in Bankruptcy: A very methodical treatment of the true sale question in securitization and possible ways out including the recent bankruptcy laws, article by Kensington & Ressler LLC -click here.
• ASSET SECURITIZATION: HOW REMOTE IS BANKRUPTCY REMOTE? : A detailed article by Michael J. Cohn discussing the "true sale" and bankruptcy- proof issues in securitization, including analysis of the rulings such as Kingston Square, etc. Click here.
• CORPORATE LOAN SECURITIZATION: SELECTED LEGAL AND REGULATORY ISSUES by THOMAS W. ALBRECHT AND SARAH J. SMITH - This intensive research-based article gives a detailed account of the legal issues involved in securitization generally, and especially of corporate loans Click here
• Law of Insurance risk securitization by Tamar Frankel and Joseph LaPlume: Commentary by Vinod Kothari -This is a brief abstract as also my comments on the authors' very readable article on the law of insurance risk securitization. click here
• An analysis of the legal position after Kingston Square ruling - Substance DOES Count: The Efficacy of Independent Directors In Bankruptcy Remote Structures - article by Michael F. Wurst discusses how independent board of directors is necessary to prevent consolidation of the SPV upon bankruptcy of the originator. Click here
• Other articles on bankruptcy-remote SPVs and Kingston Square ruling:

• Proposed FASIT and REMIC regulations in USA: Here are two analytical articles by international accounting firm Deloitte and Touche on the recently introduced draft regulations on FASITs and REMICs. The two articles provide an in-depth study of the proposed regulations and their impact on securitization markets. Both are in PDF format. Click here . Click here
• Impact of revised Art. 9 on Securitization: This article by Prof Steven Schwarcz discusses the impact of recent changes in Art. 9 of the Uniform Commercial Code of the USA on the law of transfer of receivables, and thereby on securitization transactions. Click here to read.

• Securitisation accounting article from us law firm Kaye Scholer Click here
• Canadian Accounting Standard AcG12 is substantially similar to FAS 140 - hence this article by Deloitte & Touche may be of general interest: Click here
• Cleanup Calls under FASB 140: A graphic prepared by Martin Rosenblatt of Deloitte Touche Tohmatsu encapsulates the consequences of various clean up call options on the accounting for securitization under FASB 140. Click here.
• Securitization Accounting under FASB 140: It is a comprehensive guide to FASB 140 by Marty Rosenblatt and Jim Johnson of Deloitte and Touche, USA. The 60-page booklet divided in 7 sections gives a complete guide to the issues under FASB 140, when does it apply, manner of computation of gains on sale, highlighting signficant differences between FASB 140 and FASB 15. A highly recommended resource for any one interested in accounting for securitization. The booklet will open in Adobe Acrobat format. Click here.
• FASB ISSUES STANDARD FAS 140 REPLACING FAS 125 by Martin Rosenblatt - A quick capture of the important changes in FAS 140 issued by the FASB end-Sept., 2000 Click here
• Accounting for Investors in case of Credit-sensitive ABS and MBS: New Accounting Rules under EITF 99-20 by Martin Rosenblatt - This article by a renowned securitization accounting expert explains the recent accounting rule in case of credit and interest-rate sensitive MBS and ABS deals Click here
• Accounting for investments in MBS and ABS- Sunil Gangwani of Deloitte, Touche and Tahmatsu, USA explains the investor side of accounting for securitization instruments. A very elaborate and easy reading article. This is a PDF file . Click here
• Weaning off Gain-on-sale Accounting: This article by Martin Rosenblatt discusses the recent controversy relating to gain-on-sale accounting under FASB 125 and gives practical suggestions as to how to avoid upfront recognition of income under the standard. Click here to read.

• New FDIC rule on Recourse and Residuals in securitizations: A narrative by one of world's best known experts on accounting and regulatory issues Martin Rosenblatt: click here.

• New Capital Adequacy rules of BIS: A brief description and commentary of the new BIS norms relating to securitization by Mayer Brown and Platt (PDF file) Click here.

• New BIS proposals on securitization: Quick capture of the BIS proposals on securitization along with a graphic showing the gist of the new proposals by Vinod Kothari Click here.

IT issues:

• Harnessing IT to smooth the way to securitisation: an interesting article by Tom Nicolle of Demica, UK on IT requirements of a smooth securitisation exercise. click here

• True sale securitisation - Germany and China compared; LLM thesis by Shangzhe Wang
• On this site: article by Sergio Nasarre-Aznar on Mortgage funding in Spain
• Securitisation law and markets in Italy: This is a very comprehensive commentary on the securitisation law and markets, particularly the law, in Italy. As is well-known, the Italian law has ushered a new era of growth in Italian securitisation market. The article, excerpts from a thesis, has been written by Lucia Mazzocco. Click here to read. 
• Recent developments in European Mortgage-backed securitisation market- This update from the European Mortgage Federations gives details of the new developments in several European markets. Click here for full text.
• See our page on Europe and individual country pages

• Asset-backed securitization in Japan by IBJ Securities -This is a detailed write up on the Japanese ABS market, one of the fastest growing in the World click here
• Opening the floodgates to securitisation - article by Roy True - This insightful article by Roy True traces development of securitisation in Japan, analyses the impact of recent regulatory changes and predicts that securitisation in Japan is all set to be the world's second largest market. Click here for full text.
• Article by HIDEKI KANDA

• Potential for real estate securitisation in Japan - DCR article. This article is a report by Duff and Phelps Credit Rating explaining the potential of real estate securitisation in Japan. Courtesy Mr Chandrakant Mohanty, DCR, Hong Kong. The file is in Adobe Acrobat format. Click here to read.
• Securitization of Non performing loans in Japan by Edward I Altman and Others - This extensive article reviews the securitization environment in Japan and makes a strong case for securitization of non-performing assets. The article will open with Adobe Acrobat reader Click here
• See our country page on Japan for more links and updates

• Article by Vinod Kothari and Abhishek Gupta on Potentials and Promotion of RMBS in India
• Securitization in India: Obtacles and opportunities: An article by V Sridhar of IIM Calcutta
• Dr. Y V Reddy's speech on Securitisation in India is an excellent overview of the Indian securitisation market, transactions that have been concluded in the past, and legal framework. Click here.
• More articles and links on Vinod Kothari's country page on India

• Italian Securitization law - comments by Giuseppe Rumi -This is an abstract of an article by the author soon to be published click here
• Number of other links on our country page on Italy - click here.

• Asset Securitization Overview and Current Issues in the Latin American Market - Timothy C. Leixner, Esq. explains securitization structures, main legal and other issues and the prospects in different Latin American markets. This is a PDF file . Click here
• For more on securitization in Latin America, see our Regional review - click here

• Mexico: Paving the way for entry into the capital markets through cross-border securitization Article by Latin American securitization expert Guadalupe Ornelas on Mexican securitization: click here
• Securitization of Mortgages in Mexico: In this brief article, Guadalupe Ornelas of National Law Center for Inter-American Free Trade discusses the developments and opportunities for securitisation of mortgages in Mexico. Click here to read.
• More links to Mexican securitization on our Mexico country page - click here.

• Is South Africa shaping up for securitization (Aug. 2000)- Article by Eugene de van den Berg of Sotta Securitization discusses in detail the nitty gritty and the developments in South African securitization market and concludes that SA satisfies Standard and Poor's emerging market criteria. This is a PDF file. Click here
• South Africa: Consider Securitization to Improve Liquidity of Real Estate market - Article by Eugene de van den Berg of Sotta Securitization explains hte relevance of securitization to impart liquidity to the South African housing finance market, from investor as well as issuer viewpoint. This is a PDF file. Click here

Financial evaluation / firm value/ economics of securitisation etc.:

• Securitisation: A public policy tool?: An article by Nick Davis, discusses securitization of the Crown's assets in New Zealand and public policy perspectives in costs and benefits of securitisation Click here
• Securitisation and Efficacy of monetary policy A draft article on FRB (NY) website by Arturo Estrella Click here
• Securitization and the value of the Firm - a very detailed paper by Jure Skarabot, now renamed as Securitization and SPV structures- click here. Try this alternative
• Impact of subordination structure on the value of the firm - article by Jure Skarabot - click here

• Have you enrolled for the most popular feature on my website -  our mailing list?
• Any reactions, good or bad - please do post them on our guestbook
• Have any interesting materials or links to suggest - shall be obliged for your contribution - e  -mail me
  

Copyright ...Unless otherwise mentioned, all materials on this site are subject to the sole copyright of Vinod Kothari- their reproduction and use in any form is strictly prohibited. Downloading for personal use (and not circulation) is permitted, provided the credit of such materials to Vinod Kothari is preserved. No permission is required for linking to any of the materials on this site.