SECURITISATION ARTICLES

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

• Securitisation - a Primer by Vinod Kothari. This is the first Chapter of 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
• A comprehensive primer on securitization : 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 basics of securitization, briefly about the process, documentation required, a quick guide to jargon. This is a PDF file . 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

• Investors' Guide to Asset backed Securities : a comprehensive, very easy reading narrative by Bond Markets Association - 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.

• 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: 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

• 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. This is a PDF file -click on this link open it if you Adobe Acrobat installed. Adobe Acrobat reader can be downloaded from Adobe website (http://www.adobe.com) 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

• 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

Securitization of future flows:

• Future flow securitisation in Asia : An article by Clive Rough of Freshfields 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.

• 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.

• 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.

• 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

• 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.

• Italian Securitization law - comments by Giuseppe Rumi -This is an abstract of an article by the author soon to be published 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.:

• Securitization and the value of the Firm - a very detailed paper by Jure Skarabot - click here.