Securitization is a financial practice in bringing together different types of contractual debt such as mortgages, commercial mortgages, auto loans or credit card debt obligations (or other non-debt assets that generate accounts receivable) and sell their related money flowing to investors third parties as securities, which can be described as bonds, pass-through securities, or collateralized debt obligations (CDOs). Investors are paid back from principal cash flows and interest collected from principal debt and redistributed through the capital structure of new financing. Securities supported by mortgage bills are called mortgage backed securities (MBS), while those supported by other types of receivables are asset-backed securities (ABS).
Critics have suggested that the complexity inherent in securitization may limit the ability of investors to monitor risk, and that competitive securitization markets with some securitizers may be particularly vulnerable to sharp declines in underwriting standards. Private and competitive mortgage securitization plays an important role in the US subprime mortgage crisis.
In addition, off-balance sheet treatment for securitization coupled with guarantees from the issuer may hide the leverage level of the securitization firm, thus facilitating the risky capital structure and leading to credit risk deficiencies. Off-balance sheet securitizations also played a major role in the high leverage levels of US financial institutions before the 2008 financial crisis, and the need for a bailout.
The granularity of securities asset pools can reduce the credit risk of individual borrowers. Unlike general corporate debt, the credit quality of securities debt is not stationary due to changes in time-varying volatility and structure. If the transactions are structured correctly and the pool performance as expected, credit risk from all sections of the structured debt increases; if not properly structured, the affected part may experience dramatic reductions and credit losses.
Securitization had evolved from its beginnings at the end of the 18th century to a remarkable estimate of $ 10.24 trillion in the United States and $ 2.25 trillion in Europe in the second quarter of 2008. In 2007, ABS wassuance of $ 3.455 trillion in the US and $ 652 billion. in Europe. WBS arrangements (Whole Business Securitization) first appeared in the UK in the 1990s, and became commonplace in the various Commonwealth legal systems in which senior creditors of bankruptcy businesses effectively gained the right to control the company. There are major players in securitization, they include investors, securities and companies.
Video Securitization
Structure
Merge and transfer
triggers initially have assets involved in the transaction. These are usually companies that want to raise capital, restructure debt or adjust their finances (but also include businesses that are specifically established to generate marketable debt (consumer or otherwise) for the purpose of subsequent securitization). Under the traditional corporate finance concept, such a company would have three options to raise new capital: loans, bond issuance, or stock issuance. However, the offer of shares dilutes the ownership and control of the company, while borrowing or bond financing is often very expensive due to the company's credit rating and related interest rate hikes.
The part that generates income consistently from the company may have a much higher credit rating than the company as a whole. For example, a leasing company may have provided a $ 10 million rental value, and will receive cash flows over the next five years from this. The company can not ask for early repayment on the lease so it can not recover the money early if necessary. If it could sell the right to cash flow from the lease to someone else, it could turn the income stream into a lump sum today (basically, accept today's present value of future cash flows). If the originator is a bank or other organization that must meet the requirements of capital adequacy, the structure is usually more complicated because separate companies are prepared to buy assets.
A large appropriate asset portfolio is "aggregated" and transferred to " special purpose vehicle " or " SPV " (publisher ), a company or tax-free trust established for the specific purpose of funding assets. Once the asset is transferred to the publisher, there is usually no other way to the originator. The issuer is a "far bankruptcy", which means that if the creator is bankrupt, the issuing asset will not be distributed to the creditor of the originator. To achieve this, the issuing document from the publisher limits its activities only to those required to complete the issuance of securities. Many issuers are usually "orphans". In the case of certain assets, such as credit card debt, in which the portfolio consists of an ever-changing collection of receivables, the belief in SPV can be expressed as a substitute for traditional transfer by assignment (see outline of the main trust structure below).
Accounting standards govern when such transfers are genuine sales, financing, partial selling, or part-selling and partial financing. In true sales, the originator is allowed to remove the assets transferred from the balance sheet: in financing, the asset is assumed to remain the property of the originator. According to US accounting standards, originators achieve sales by being in the long arm of the publisher, in this case the publisher is classified as " qualified goal body " or " qSPE ".
Due to this structural problem, the originator usually needs the help of an investment bank (regulator ) in preparing the transaction structure. Publishing
To be able to purchase assets from its originators, SPV publishers issue tradable securities to fund purchases. Investors buy securities, either through private offerings (targeting institutional investors) or on the open market. This security performance is then directly related to asset performance. Credit rating agencies assess the securities issued to provide an external perspective on the obligations made and help investors make more informed decisions.
In transactions with static assets, a depositor will collect underlying guarantees, assist in securities structures and work with financial markets to sell securities to investors. Depositors have taken on additional significance under Rule AB. Depositors typically have 100% of the beneficial interest in the issuing entity and are usually the parent or wholly owned subsidiary of the parent who initiated the transaction. In transactions with managed assets (traded), asset managers collect underlying guarantees, help to arrange securities and work with financial markets to sell securities to investors.
Some transactions may include third party guarantors which provide a partial guarantee or guarantee for assets, principal and interest payments, for a fee.
Securities may be issued either with a fixed rate or floating rate under the pegging currency system. Fixed rate ABS sets the "coupon" (value) at the time of issue, in a manner similar to corporate bonds and T-Bills. The floating interest rate can be supported by amortization and non-amortization assets in the floating market. Unlike fixed-rate securities, tariffs on "floaters" will be periodically adjusted up or down according to a designated index such as US Treasury rate, or, more typically, London Interbank Offered Rate (LIBOR). Floating rates usually reflect movements in the index plus an additional fixed margin to cover additional risks.
Credit increase and tranching
Unlike conventional unsafe corporate bonds, securities made in securitization are "enhanced credits", which means their credit quality rises above that of the unsecured debt of the creator or underlying underlying asset. This increases the likelihood that investors will receive the cash flows they are entitled to, and thus allow securities to have a higher credit rating than the originators. Some securitization uses external credit enhancements provided by third parties, such as collateral and parental guarantees (although this may create a conflict of interest).
Published effects are often divided into tranche , or categorized into various subordination levels. Each stage has different levels of credit protection or risk exposure: there is generally a senior securities class ("A") and one or more subordinated junior classes ("B", "C", etc.) that serve as a protective layer for class "A ". The senior class has the first claim on cash received by SPV, and a more junior class just begins to receive payments after the more senior classes have been repaid. Because of the interclass cascade effect, this arrangement is often referred to as cash flow of the cash flow . If the underlying underlying asset is insufficient to make a payment to the securities (eg when the loan fails in the loan claims portfolio), the losses are absorbed first by the subordinated tranche, and the upper level remains unaffected until the loss exceeds the entire amount of the subordinated tranche. Senior securities may be rated AAA or AA, indicating lower risk, while lower grade subordinate credit grade receives a lower credit rating, indicating a higher risk.
The most junior classes (often called equity classes ) are most exposed to payment risks. In some cases, this is a special type of instrument maintained by the originator as a potential profit stream. In some cases, the equity class does not accept coupons (either fixed or floating), but only the residual cash flow (if any) after all other classes have been paid.
There may also be a special class that absorbs the initial payment in the underlying asset. This is often the case where the underlying asset is a mortgage that is, in effect, paid off whenever the property is sold. Since earlier payments are forwarded to this class, it means other investors have more predictable cash flows.
If the underlying asset is a mortgage or a loan, there are usually two separate "waterfalls" because the receipts of the principal and interest can be easily allocated and matched. But if the asset is an income-based transaction such as a lease transaction, one can not easily categorize earnings between income and principal repayments. In this case all income is used to pay cash flows due on the bonds when the cash flows are due.
Increased credit affects credit risk by providing more or less protection for the cash flow promised for security. Additional protection can help security achieve higher rankings, lower protection can help create new securities with different desired risk, and this differential protection can make securities more attractive.
In addition to subordination, credit can be increased through:
- An reserve or spread account , where funds remaining after expenses such as principal and interest payments, off-charge and other expenses have been fully accumulated, and can be used when the cost of SPE is greater than its revenue.
- Third party insurance, or guarantee of principal payments and interest on securities.
- Over-collateralization , usually by using the financial income to pay off principal on some securities prior to the principal on the corresponding collateral portion is collected.
- Cash fund or a cash collateral account , generally consisting of short-term, high-value investments purchased either from the seller's own funds, or from funds borrowed from a third party can be used to cover the lack of promised cash flows.
- A third party letter of credit or a company guarantee.
- Provider of back-ups for loans.
- Discounted receivables for pool.
Service
A service provider collects payments and monitors assets that are at the heart of a structured financial deal. Service providers can often be the originators, as service providers require skills that are very similar to the originators and want to ensure that loan payments are paid to Special Purpose Vehicles.
Service providers can significantly influence cash flow to investors as it controls the collection policy, which affects the results collected, the cost-off and loan recovery. Any remaining earnings after payments and expenses are usually accumulated to some extent in the backup or spread account, and any further benefits are returned to the seller. The bond rating agency publishes asset-backed securities ratings based on the performance of collateral pools, credit increase and possible default.
When a publisher is structured as trust, the guardian is an essential part of the deal as a gatekeeper of an asset held in the publisher. Although the trustee is part of the SPV, which is usually wholly owned by the Originator, the trustee has a fiduciary duty to protect assets and those with assets, usually investors.
Payment structure
Unlike corporate bonds, most securitization is amortized, which means that the amount borrowed principally is repaid gradually over a specified loan term, not simultaneously on loan maturity. Fully amortized securitization is generally secured by full amortization assets, such as home equity loans, car loans, and student loans. Prepaid uncertainty is an important issue with fully amortized ABS. Prepaid rates may vary widely with the underlying underlying asset types, so many prepaid models have been developed to try to define public payments activities. The PSA payment model is a well-known example.
A controlled amortization structure can give investors a more predictable payment schedule, even if the underlying asset may be nonamortising. After a specified "revolving period", in which only interest payments are made, this securitization seeks to return principal to investors in a specified series of periodic payments, usually within a year. Early amortization events are the risk of debt being retired early.
On the other hand, the bullet or snail structure returns principal to the investor in a single payment. The most common bullet structure is called soft bullet , which means that final bullet payment is not guaranteed to be paid on the scheduled due date; However, the majority of these securitizations are paid on time. The second type of bullet structure is hard bullet , which ensures that the principal will be paid on the scheduled due date. Hard bullet structures are less common for two reasons: investors are comfortable with soft bullet structures, and they are reluctant to accept lower yields from hard-bullet securities instead of collateral.
Securitization is often structured as a sequence of consecutive payments, payable in sequence based on maturity. This means that the first phase, which may have an average life of one year, will receive all principal payments until retirement; then the second stage begins to accept the subject, and so on. The pro rata bond structure pays any proportional tranche of the principal throughout the lifetime of security.
Structural risk and incentive errors
Some initiators (eg mortgages) have prioritized loan volume on credit quality, ignoring the long-term risks of assets they create in their enthusiasm to profit from origination and securitization costs. Other initiators, who are aware of the dangers of reputation and additional costs if the loan is at risk of being subject to repurchase requests or incorrectly originating loans that lead to litigation, have paid more attention to credit quality.
Maps Securitization
Special type of securitization
Master trust
The main belief is the type of SPV that is perfectly suited to handle the revolving credit card balances, and has the flexibility to handle different securities at different times. In the main trust transaction, the creator of the credit card bill transferred the pool of receivables to the trust and then the trust issued the securities backed by the receivables. Often there will be many securities issued by all trusts based on a set of receivables. After this transaction, usually the originator will continue to serve accounts receivable, in this case a credit card.
There are various risks involved with the particular trust in particular. One of the risks is that the cash flow time promised to the investor may differ from the time of payment on the receivables. For example, credit card-backed securities can have a maturity of up to 10 years, but credit card-backed receivables usually pay off much faster. To solve this problem these securities usually have rolling periods, accumulated periods, and amortization periods. These three periods are based on the historical experience of accounts receivable. During the rolling period, principal payments received on credit card balances are used to purchase additional accounts receivable. During the accumulated period, these payments are accumulated in a separate account. During the amortization period, new payments are passed to investors.
The second risk is that the total interest of the investor and the seller's interest is limited to the receivables generated by the credit card, but the seller (the originator) owns the account. This can cause problems by the way the seller controls the terms and conditions of the account. Usually to deal with this, there is a language written into securitization to protect investors and potential accounts receivable.
The third risk is that payments on receivables can shrink the pool balance and under-collateralize the total investor interest. To prevent this, there is often a minimum seller interest required, and if there is a decrease there will be an initial amortization event.
Publishing responsibility
In 2000, Citibank introduced a new structure for credit card-backed securities, called publishing trusts, which have no limitations that are sometimes perpetrated by trust trusts, requiring each series of securities to be issued to both senior and subordinate. There are other benefits to publishing trust: they provide more flexibility in issuing senior securities, can increase demand because pension funds are entitled to invest in their investment grade securities, and they can significantly reduce the cost of issuing securities. Due to this issue, the publishing trust is now the dominant structure used by major credit card backed securities issuers.
Trusting
Trust givers are typically used in car-backed securities and REMIC (Real Estate Mortgage Investment Conduits). The gift of trust is very similar to the trust pass-through used in the early days of securitization. The originator collects the loan together and sells it to the creditor, who issues the securities class backed by this loan. The principal and interest received on the loan, after the cost is taken into account, is passed on to the stockholders on a pro rata basis.
Trust owner
In the owner's belief, there is more flexibility in allocating principal and interest earned into different classes of issued securities. In the owners' trust, both interest and principal because of subordinate securities can be used to pay senior securities. Therefore, the owner's confidence can adjust the maturity, risk profile and return of securities issued for investor needs. Typically, any revenue remaining after the cost is stored in a backup account up to a certain level and then after that, all revenues are returned to the seller. The owner's trust allows credit risk to be dampened by over-colateralization by using excess reserves and excessive financial earnings for prepaid pre-principal effects, leaving more guarantees for other classes.
Motives for securitization
Advantages for publishers
Reduced funding costs : Through securitization, the company rated BB but with AAA's eligible cash flows will be able to borrow at possible AAA levels. This is the number one reason to secure cash flow and can have a major impact on borrowing costs. The difference between a BB debt and AAA debt can be hundreds of base points. For example, Moody's downgraded Ford Motor Credit ratings in January 2002, but senior auto-backed securities, issued by Ford Motor Credit in January 2002 and April 2002, continue to be valued AAA due to underlying collateral strength and other credit enhancements.
Reduce the liability of assets : "Depending on the structure chosen, the securitization can offer the perfect matching funding by eliminating the exposure of funding in terms of both duration and base price." Basically, in most banks and finance companies, books of liability or funding come from loans. These often come at a high cost. Securitization allows banks and such finance companies to create self-funded asset books.
Lower capital requirements : Some companies, for legal, regulatory, or other reasons, have limits or ranges that allow their leverage to become. By securing some of their assets, which qualify as sales for accounting purposes, these companies will be able to remove assets from their balance sheets while retaining the "earnings power" of the assets.
Lock profit : For certain business blocks, the total profit has not yet emerged and thus remains uncertain. Once the block has been secured, its profit rate has now been locked for the company, so the risk of a non-profit gain, or profit from super profits, has now been continued.
Risk transfers (credit, liquidity, prepayment, reinvestment, asset concentration): Securitization allows the transfer of risk from the unwilling entity to the one who does it. Two good examples of this are disaster bonds and Entertainment Securitizations. Similarly, by securing a set of businesses (thereby locking in profit levels), the company has effectively relieved its balance to come out and write more profitable businesses.
Beyond the balance sheet : Derivatives (financial) of many types in the past have been referred to as "off-balance-sheet." This term implies that the use of derivatives has no impact on the balance sheet. While there are differences between the various international accounting standards, there is a general trend towards the requirement to record derivatives at fair value on the balance sheet. There is also a generally accepted principle that, if a derivative is used as a hedge against an underlying asset or liability, an accounting adjustment is necessary to ensure that the gain/loss on a hedged instrument is recognized in the income statement on an equal basis with the underlying assets and liabilities. Certain credit derivative products, in particular Credit Default Swaps, now have more or less the universally accepted market standard documentation. In the case of Credit Default Swaps, this documentation has been formulated by the International Swap and Derivatives Association (ISDA) which has long provided documentation on how to treat the derivatives on the balance sheet.
Earnings : Securitization makes it possible to record an increase in earnings without any real additions to the company. When securitization occurs, there is often a "real sale" that occurs between the Originator (the parent company) and the SPE. This sale should be for the market value of the underlying asset for "real sales" to remain and thus this sale is reflected on the parent company's balance sheet, which will increase revenue for that quarter by the amount of sales. While not illegal in any case, this does not alter the original income of the parent company.
Admissibility : Future cash flows may not get full credit in company accounts (life insurance companies, for example, may not always get full credit for future surpluses in their balance sheets), and securitization effectively changes acceptable future surplus flow becomes an acceptable cash asset.
Liquidity : Cash flow in the future may only be a balance sheet item that is currently unavailable for expenditure, whereas once the book has been secured, cash will be available for direct expenditure or investment. It also creates reinvestment books that may be at a better level.
Disadvantages for publishers
May reduce portfolio quality : If AAA risk, for example, is securities, this will leave the risk of remaining a much worse risk.
Costs : Securitization is expensive due to system management and costs, legal fees, underwriting fees, rating fees, and ongoing administration. Allowance for unexpected costs is usually important in securitization, especially if it is atypical securitization.
Size limitations : Securitizations often require large-scale structuring, and thus may not be cost effective for small and medium-sized transactions.
Risk : Because securitization is a structured transaction, it may include a par structure and a credit increase subject to the risk of impairment, such as prepayment, as well as credit losses, especially for structures where there are some retain strips.
Benefits for investors
Opportunity to potentially get higher rate of return (based on tailored risk)
Opportunities to invest in a particular set of high-quality assets : Due to stricter requirements for a company (for example) to achieve high rankings, there is a dearth of existing high-ranking entities. Securitization, however, allows for the creation of large amounts of AAA, AA, or A bonds, and risk investors rejecting institutional investors, or investors who are required to invest only in high-ranked assets, have access to a large pool of investment options.
Portfolio diversification : Depending on securitization, hedge funds and other institutional investors tend to like investing in bonds made through securitization because they may not be correlated with bonds and other securities.
Credit risk isolation from the parent : Because assets with isolated (at least in theory) securities from the assets of the original entity, under securitization may be enabled for securitization to receive a higher credit rating than "parent", because of the underlying risk different. For example, a small bank may be considered more risky than a mortgage loan granted to its customers; is a mortgage loan to remain with the bank, the borrower may effectively pay higher interest (or, like the possibility, the bank will pay higher interest to its creditors, and hence less profitable).
Risk for investor
Liquidity risk
Credit/default : Default risk is generally accepted as a borrower's inability to meet timely interest payment obligations. For ABS, negligence can occur when maintenance obligations underlying guarantees are not adequately met as detailed in the prospectus. The main indicator of a particular security default risk is its credit rating. Different tranche in ABS is judged differently, with most senior classes receiving the highest rank, and the subordinate grade receiving a lower credit rating. Almost all mortgages, including reverse mortgages, and student loans, are now insured by the government, which means that taxpayers are on the hook for any worsening loans even if assets are massively increased. In other words, there are no restrictions or restrictions on excessive spending, or liability to taxpayers.
However, the 2007-2008 credit crunch has opened up a potential gap in the securitization process - loan initiators maintain no residual risk for loans they make, but accumulate substantial costs on loan issuance and securitization, which do not encourage an increase in guarantee standards.
Event risks
Initial/early reinvestment/amortization : The rotating majority of ABS is subject to the initial amortization risk level. Risk stems from certain initial amortization events or payment events that cause security to be paid off prematurely. Typically, payment events include inadequate payments from underlying borrowers, insufficient excessive spreads, an increase in the default rate on underlying loans above a certain level, a decrease in credit below a certain level, and bankruptcy on the part of the sponsor or service provider.
Currency rate fluctuations : As with all fixed income effects, the ABS interest rate moves in response to changes in interest rates. The interest rate fluctuations affect the floating rate rate of ABS rates less than the fixed interest rate, as the index adjusted to the ABS level will reflect changes in interest rates in the economy. In addition, changes in interest rates may affect the rate of early repayment of principal loans that support some types of ABS, which may affect outcomes. Home equity loans tend to be most sensitive to changes in interest rates, while car loans, student loans, and credit cards are generally less sensitive to interest rates.
Contract agreement
The moral hazard : Investors typically rely on transaction managers to set asset prices underlying securitization. If a manager gets cost based on performance, there may be a temptation to mark the price of a portfolio asset. Conflicts of interest may also arise with senior record holders when managers have claims for excessive spread of the deal.
Service risks : Transfer or collection of payments may be delayed or reduced if the provider becomes bankrupt. This risk is mitigated by having a backup servicer involved in the transaction.
History
Initial development
The practice of modern securitization is rooted in the seventeenth-century Dutch Republic.
Examples of securitization can be found at least as far back as the 18th century. Among the earliest examples of mortgage-backed securities in the United States were agricultural mortgage bonds in the mid-19th century that contributed to the panic of 1857.
In February 1970, the US Department of Housing and Urban Development created the first modern security backed housing mortgage. The Government of the National Mortgage Association (GNMA or Ginnie Mae) sells securities supported by the mortgage loan portfolio.
To facilitate the securitization of non-mortgage assets, the business replaces private credit enhancement. First, they are a collection of over-collateralised assets; Soon, they improved third-party and structural improvements. In 1985, securitization techniques that have been developed in the mortgage market applied for the first time to a class of non-mortgage assets - auto loans. The second set of assets is only for mortgages in volume, auto loans are a good pair for structured finance; Their maturity, much shorter than the mortgage, makes cash flow time more predictable, and their long history of performance statistics gives investors confidence.
This initial loan agreement is a $ 60 million securitization from the Marine Midland Bank and ratified in 1985 by the Certificate for Automobile Receivables Trust (CARS, 1985-1).
The sale of the first significant bank credit cards came to market in 1986 with a personal placement of $ 50 million of outstanding bank card loans. This transaction shows to investors that, if the yield is high enough, the loan pool can support the sale of assets with higher expected losses and administrative costs than is true in the mortgage market. This type of sale - without contractual obligations by the seller to provide another way - allows banks to receive sales care for accounting and regulatory purposes (reducing balance sheets and capital constraints), while at the same time allowing them to maintain origination and cost services. After the success of these initial transactions, investors grew to accept credit card bills as collateral, and banks developed structures to normalize cash flow.
Beginning in the 1990s with some previous private transactions, securitization technologies were applied to a number of reinsurance and insurance market sectors including life and disaster. This activity grew nearly $ 15bn from publishing in 2006 after disruption in the underlying market caused by Hurricane Katrina and Rule XXX. Key areas of activity in a wide area of ​​Alternative Risk Transfer include disaster bonds, Life Insurance Securities, and Reinsurance Sidecars.
The first Public Securitization Loan for Reinvestment Society (CRA) began in 1997. CRA loans are loans intended for low- and middle-income borrowers and the environment.
As estimated by the Bond Markets Association, in the United States, the total amount outstanding at the end of 2004 was $ 1.8 trillion. This amounts to about 8 percent of the total bond market debt ($ 23.6 trillion), about 33 percent of mortgage-related debt ($ 5.5 trillion), and about 39 percent of corporate debt ($ 4.7 trillion) in the United States. Nominally, over the previous ten years (1995-2004) the number of circulated ABS has grown by about 19 percent annually, with debt-related mortgages and corporate debt growing at about 9 percent each. Gross publicly-backed securities issuance, setting new records for years. In 2004, the publishing was at an all-time record of around $ 0.9 trillion.
By the end of 2004, the larger sectors of this market were credit-backed securities (21 percent), equity-backed securities (25 percent), auto-backed securities (13 percent), and guaranteed debt obligations ( 15 percent). Among other market segments are securities supported by student loans (6 percent), equipment rental (4 percent), housing produced (2 percent), small business loans (such as loans for shops and gas stations), and aircraft leasing.
Modern securitization began in the late 1990s or early 2000s, thanks to innovative structures applied across asset classes, such as the UK Mortgage Master Trust (a concept imported from US Credit Cards), Insurance supported transactions (as applied by securitization teachers insurance Emmanuel Issanchou) or even more esoteric asset classes (eg securitization of lottery receivables).
As a result of the credit crunch precipitated by the subprime mortgage crisis, the US market for bonds backed by securities loans was very weak in 2008 except for bonds guaranteed by federal-backed agencies. As a result, interest rates rise for previously securities loans such as home mortgages, student loans, car loans and commercial mortgages
Recent demands
Recently there have been several lawsuits associated with securitization ratings by three leading rating agencies. In July, 2009, the largest US public pension fund has filed suit in a California state court in connection with a $ 1 billion loss it said was caused by a "wildly inaccurate" credit rating from three leading rating agencies.
See also
- Debt obligations, securitization vehicles for corporate debt securities
- Collateralized loan obligations, securitization vehicles for private equity and hedge fund assets
- Liability on collateral lent, securitization vehicle for mortgage backed securities
- Borrowed loan obligations, securitization vehicles for corporate loans
References
External links
- The BBC's Financial Rocket Scientist: City Demolished
Source of the article : Wikipedia
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