This document discusses securitization, which involves pooling various assets and converting claims on those assets into marketable securities.
[1] Securitization allows illiquid assets like mortgages or receivables to be purchased by investors by pooling them into a special purpose vehicle that issues asset-backed securities. This provides the originator access to cheaper funding.
[2] For securitization to be "bankruptcy remote", the assets must be truly sold to the SPV and kept separate if the originator goes bankrupt, through proper formalities and preventing commingling of assets.
[3] While securitization has grown in Sri Lanka, various legal, tax and administrative issues still hinder its potential
For full text article go to : http://www.educorporatebridge.com/securitization/securitization-of-assets This Article explain concepts like securitization of asset, meaning of securitization in layman language, ABS,MBS,CDO,CMO etc.
For full text article go to : http://www.educorporatebridge.com/securitization/securitization-of-assets This Article explain concepts like securitization of asset, meaning of securitization in layman language, ABS,MBS,CDO,CMO etc.
Securitization is the process conversion of receivables and cash flow generated from a collection or pool of financial assets like mortgage loans, auto loans, credit card receivables etc into the marketable securities.
The Presentation is meant for learning purpose where it defines what is Sukuk, Types of Sukuk, Structure of Sukuk, Islamic Mode , Riba, Difference Between Sukuk and Bonds, Islamic structure, Structure Ijarah Murabaha Musharakah Mudarbah Istisna salam Bai Salam
Securitization is the process conversion of receivables and cash flow generated from a collection or pool of financial assets like mortgage loans, auto loans, credit card receivables etc into the marketable securities.
The Presentation is meant for learning purpose where it defines what is Sukuk, Types of Sukuk, Structure of Sukuk, Islamic Mode , Riba, Difference Between Sukuk and Bonds, Islamic structure, Structure Ijarah Murabaha Musharakah Mudarbah Istisna salam Bai Salam
Powerpoint slides on Securitization Act 2002. This a financial term. This powerpoint will create good awareness regarding securitization. how this does happen, who have right to do this process etc. people get to know how do banks manage their NPAs.
Revisiting A Panicked Securitization MarketIOSR Journals
With the passage of Finance Bill 2013 on April 30 in Lok Sabha proposing to Levy a 30% distribution tax on the investors in securitization deals through special purpose vehicles, there is a stir in the securitization market. The principal investors (banks) were paying the tax on their net income from the securitization transaction through SPVs. Now, they will be taxed on the gross income as per the new Finance Bill. The new securitization guidelines issued in May 2012 dipped the volume of fresh issue to Rs. 28,400 crore from Rs. 44,500 crore in the preceding fiscal.
Securitization is an American invention, but no longer remains an American curiosity. Almost every country’s financial systems have certain securitization schemes. Today, securitized assets not only include mortgages on properties, but also credit card receivables, computer leases, equipment notes financing, auto loans, and even future sales of music records. Securitization is the financial practice of pooling various types of contractual debt, such as residential mortgages, commercial mortgages, auto loans, or credit card debt obligations, and selling said consolidated debt as pass-through securities, or collateralized mortgage obligation (CMOs) to various investors. The cash collected from the financial instruments underlying the security is paid to the various investors who had advance money for that right. Securities backed by residential mortgage receivables are called residential-mortgage-backed securities (RMBS), while those backed by other types of receivables are asset-backed securities (ABS). Securitization has emerged globally as an important technique for bundling assets and segregating risks into marketable securities. It involves parceling and selling pools of eligible assets by the company owning the assets to a Special Purpose Vehicle (SPV) company, which issues debt securities to finance the purchase of such assets. This paper will discuss the present nascent state of the securitization market in India, its potential and attempts to identify what needs to be done by various stakeholders in this market for securitization to grow into its full potential. The paper will attempt to explain the growth of securitization in different markets, elaborating on the process, reasons for securitizing as- sets, benefits of and requirements for a successful asset securitization focusing on India with special reference to SARFAESI Act 2002.
Describes the procedure of issuing securities. A company must adhere to certain rules and regulations that it must follow if it wants to issue bonds/securities. These are discussed
The Uniform Commercial Code (“UCC”) is a uniform act that was established to harmonize the laws of sales and commercial transactions. It has been substantially adopted in all 50 states and the District of Columbia. The UCC is divided into 11 Articles with each one addressing a different area of commercial law. Article 9 governs security interests in personal property and contains detailed rules regarding the creation, attachment, and perfection of security interests; the relative priorities of competing security interests; and remedies available to a creditor upon a borrower's default. The navigation of the debtor-creditor relationship is at the heart of any bankruptcy proceeding. This webinar examines some of the key issues involving the interaction between a debtor and its secured creditors both before and after the filing of a bankruptcy, including the pre-bankruptcy perfection and priority of security interests, the post-bankruptcy protection of a secured creditor’s rights in a debtor’s collateral, and the options available for the parties to address and administer such collateral in the context of a bankruptcy proceeding.
Part of the webinar series: BANKRUPTCY INTERSECTIONS 2022
See more at https://www.financialpoise.com/webinars/
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
This assessment plan proposal is to outline a structured approach to evaluati...
Securitization
1. SECURITISATION– THE FINANCIAL INSTRUMENT OF THE NEW MILLENINIUM
Samathri Kariyawasam, B.B.A. (Colombo)
Attorney - at Law
Senior Legal Officer – DFCC Bank
1. INTRODUCTION
What is Asset Securitisation?
Asset-backed securities are securities, which are based on pools of underlying assets.
These assets are usually illiquid and private in nature. A securitisation occurs to make
these assets available for investment to a much broader range of investors. The “pooling”
of assets makes the securitisation large enough to be economical and to diversify the
qualities of the underlying assets. A special purpose vehicle is set up which takes title to
the assets and the cash flows are “passed through” to the investors in the form of an asset-
backed security. The types of assets that can be “securities” range from residential
mortgages to trade receivables. The asset-backed security usually qualifies for a top rating
and enables the issuing company or bank to raise funds at a very attractive rate.
2. DEFINITION OF SECURITISATION
“A device of structured financing where an entity seeks to Pool together its interest
in identifiable cash flows over time, transfer the same to investors either with or
without the support of further collaterals and thereby achieve the purpose of
financing”.
Vonord Kothari
Securitisation, the Financial Instrument of the New Millennium
In simple Securitisation is a process of converting something, which is not a security in to a
security.
In a Asset Securitisation, a Financial claims or a claim against a third party are assigned or
sold to a special entity called the Special Purpose Vehicle (SPV). The objective is to legally
separate asset from the issuer. The SVP in turn issues one or more debt instruments,
whose interest and principal payments are serviced from the cash flows arising out of the
underlying Assets.
Special
Purpose
Company Investor
Vehicle
Pool of Asset Backed
Cash flows Securities
The security at the end of the process of securitisation is an Asset Back Security and this
security is significantly different from a usual Capital Market instrument. A usual Capital
Market instrument is an exposure in the Business of the issuer but an Asset Back security
is simply an exposure in an Asset.
2. 3. PARTIES INVOLVED IN SECURITISATION
a) Obligor
The Debtor who has sums to pay to the Organization
b) Originator
The Entity that initiates the process of securitisation by transforming its assets in to
securities
c) Special Purpose Vehicle (SPV)
A legal entity either created or existing which act as a transformation device holding the
assets receivable transferred by the originator on behalf of the investor and issues
securities.
If an operating company holds assets, it might incur expenses, and or incur liabilities
and might go bankrupt, but a special purpose vehicle is a legal entity with only the
specific assets transferred by the Originator. This is what makes a special purpose
vehicle Bankruptcy remote
ORGANIZATIONAL FORMS OF SPVS
1. Signal Purpose Company
2. Trust
d) Investor
1. Banks
2. Government agencies
3. Insurance Companies
4. BANKRUPTCY REMOTE SECURITISATION
The main goal of a company utilizing asset securitisation techniques is simple: to obtain
access to low-cost capital that is otherwise unavailable through conventional means. The
company desiring to effectuate a securitization must begin by identifying assets that
generate a relatively predictable stream of payments. These assets are quot;receivables.quot; The
company seeking to securitise the receivables is known as the quot;originator.quot;
One of the primary goals of securitisation is to isolate the receivables from the group of
assets held by the originator in the event of the originator's bankruptcy. In order to
adequately shield the receivables from the originator's bankruptcy estate and from the
reach of the originator generally, it is necessary to set up what is known as a special
purpose vehicle (quot;SPVquot;). The SPV will purchase the receivables from the originator and
issue securities backed by the receivables. It is important that the SPV purchase the assets
in what bankruptcy law refers to as a quot;true sale.quot; That means that the assets will not
become a part of the originator's bankruptcy estate should the originator become the
subject of a bankruptcy proceeding.
Another way to shield the SPV from the originator is through the observance of all
necessary formalities consistent with existing as a completely separate entity. This should
prevent the bankruptcy court from substantively consolidating the assets and liabilities of
the originator with that of the SPV. It is important to keep the SPV and its receivables out of
the originator's bankruptcy estate,.
Finally, the structure of the SPV should prevent it from engaging in any activities outside of
its quot;special purpose.quot; The SPV's only purpose should be to hold the assets that provide the
basis for its securities.
All of the procedures outlined above allow the SPV to achieve the status of quot;bankruptcy
remotequot;-a rating company's indication of a reduced risk that the SPV will be strapped into a
bankruptcy of the originator. The SPV's ability to attain the status of bankruptcy remote is a
cornerstone of any securitisation as it allows the SPV to issue debt securities at a lower
rate of interest than the originator.
Asset Securitisation: How Remote is Bankruptcy Remote? by Michele J.Cohn
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3. 5. STRUCTURE OF SECURITISATION
When discussing the structure of securitisation it can be mainly categorised into Existing
Asset Securitisation and Future Asset Securitisation.
In an Existing Asset securitisation, the cash flow or the Asset exists. In a Future flow
securitisation there is no existing claim, the claim with be created in future. An Exiting Asset
Securitisation is a distinction between Mortgage backed securities and Asset back
securities. The mortgaged backed securitisation is the securitisation of mortgage loans
including commercial as well as residential loan mortgages. The Asset backed
securitisation is securitisation of non – mortgage assets
6. SOME BASIC ATTRIBUTES OF ASSETS THAT CAN BE SECURITISED
Assets should represent a cash flow
Cash flow should be for a period of time
Cash flow should be steady and easy to identify
Quality of the receivables
• Good record of past payment statistics
• Good collateral protection
Capacity to assign
Securitisation is a transfer of a right to receive against a third party of the assignee.
Homogeneity of Assets
Assets in one portfolio should be of similar features
7. BASIC PROCEES OF SECURITISATION
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4. 8. LEGAL FRAMEWORK FOR SECURITISATION
It is important to ensure that the transfer of assets by the originator is a Legally Valid
Transfer and such assets would stay clear of any claim of the originator his creditor,
liquidator and serve for the benefit of the investor.
9. BASIC PRE-CONDITION FOR LEGAL TRANSFER OF RECEIVABLES
The receivables must be existing at the time of the assignment.
The Receivables must be identifiable:
• Who is the obligator, whose debt is being transferred
• If the Obligor has several obligations to pay, which of these obligations are being
transferred
The whole of the Receivable should be assigned
• “If there is a assignment of a receivable, then the whole of the receivable should be
assigned”. English Common Law Principles
It must be an assignment of a right and not a obligation
• Assignment of a right is possible
• Assignment of a Obligation is possible, only if the Person to whom the Obligation is
owed given his consent to the Assignment.
This principle is not applicable to securitisation as in securitisation there is no
transfer of Obligation, but only a transfer of a right.
• If there is a right with the Originator, which is based on an Obligation of the
Originator the right is not assigned unless the obligation has been satisfied
10. LEGAL ISSUES IN SRI LANKA LEASE SECURITISATION MARKET
According to Sec 24 of the Finance Leasing Act No. 56 of 2000 “Lessor may with written
notice to the Lessee, transfer or assign all or any of the Lessor’s rights to any other
Registered Establishment “.
This was a stumbling block to the development of the Lease securitisation in Sri Lanka as
Lessor notification was a cumbersome process and did not obviously serve the business
interest of the Lessor or the Originator.
Further this Act prevented any institution which deals in Leasing to be a registered Leasing
entity with the Central bank of Sri Lanka if it is to carry out Securitisation on Finance Lease
receivables.
At present the market place is crowded with many Financial Institutions which are dominant
players in the Leasing market and the existence of the above constraints restricted the
growth of the Leasing Securitisation market. Several amendments were introduced by the
Act No. 24 of 2005 which allowed Leasing receivables to be assigned to the Special
Purpose Vehicle (SPV) or the Trust amounting to a ‘True Sale”.
It is also important to note that as per the said amended Act No 24 of 2005 (Sec 24[4]),
upon transfer of the right in a motor Vehicle within the meaning of the Motor Traffic Act to a
SVP, the transferee (in securitisation the SVP) shall be deemed to be the absolute owner of
the Motor Vehicle.
11. CONCLUTION
Securitisation-The Financial Instrument of the New Millennium is expected to capture the
capital Market of the World.
In Sri Lanka Securitisation has become a popular Financial Instrument but there are
number of Legal, Taxation and Administrative impediments that presently hinder the
potential growth in Securitisation market. Therefore for there to be Ideal Securitisation, the
Legal system must provide for the establishment of securitisation vehicles with the
necessary independent status and the powers to carry out their necessary operations.
References
1. Vinod Kothari, Securitisation, The Financial Instrument of the New Millennium (2nd edition)
2. Asset Securitisation: How Remote is bankruptcy Remote? by Michele J.Cohn
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