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CHARACTERISTICS OF
SECURITIZED ASSETS
By Firminy Capital Sarl
Introduction
 Throughout its history in Luxembourg, Firminy Capital Sarl
has managed a number of Luxembourg Securitizatio...
Securitized Assets
 In terms of safety, securitized products are
much better protected than their underlying
assets. Alth...
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Characteristics of Securitized Assets

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Throughout its history in Luxembourg, Firminy Capital Sarl has managed a number of Luxembourg Securitization Funds, including the private fund known as the Firminy Equity Fund. Thanks to the support of Top 500 financial specialists, Firminy Capital Sarl has emerged as a reputable firm in the Luxembourg securitization sector.

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Characteristics of Securitized Assets

  1. 1. CHARACTERISTICS OF SECURITIZED ASSETS By Firminy Capital Sarl
  2. 2. Introduction  Throughout its history in Luxembourg, Firminy Capital Sarl has managed a number of Luxembourg Securitization Funds, including the private fund known as the Firminy Equity Fund. Thanks to the support of Top 500 financial specialists, Firminy Capital Sarl has emerged as a reputable firm in the Luxembourg securitization sector. Although securitization principles can be applied to many different types of pooled assets, securitized products typically include many of the same basic features. Securitized products generally have a higher-than-average yield, which comes at the cost of less-certain cash flow timing. Securitized products are also highly diverse in nature, allowing investors to access the relatively low levels of risk typically associated with vehicles such as government bonds.
  3. 3. Securitized Assets  In terms of safety, securitized products are much better protected than their underlying assets. Although an individual asset can feature considerable volatility, the larger pool of assets benefits from protective structures such as investment-grade ratings and internal credit enhancement. However, if all underlying assets suffer significant losses, like mortgages did during the financial crisis of 2008, internal credit enhancement can do little to protect investors from losses.

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