ASSET SECURITIZATION


ASSET SECURITIZATION - Interactive Virtual Training Program by Industry Speakers

COURSE CONTENT:

Day 1:

-Introduction

·       What is Securitization?

·       Quick understanding of Securitization structure

·       Evolution - RBI guidelines for Securitization – 2006/2012, SEBI norms for listing asset-backed securities (2008), Securitisation Distribution Tax (2013), Finance Act (2016 / 2019)

·       Market Overview

·       Priority Sector Angle to Securitization

·       The Appeal of Securitization – Analysis of Needs of Originator and Buyer

·       The Broad Universe of Asset Classes – Mortgage Based & Asset Based, Revolving Receivables ( Recent Innovation), Infrastructure, Trade Receivables

·       Parties to a Securitisation including SPV and the Roles they play.

·       Structure of a Securitization – DA vs. PTC

·       Structure of a Securitization – Fully Amortising, Par & Premium, Senior/Subordinate, Fixed & Floating Rate

·       Originator Assessment

-Structure of Securitization transactions

-Dissection of Credit Risk by Rating Agency

·        Portfolio risk– Static data, Dynamic data analysis

·       Pool (obligor) Risk Assessment with adjustments for Granularity, LTV, and Loan tenors etc.

·       Application of portfolio and pool risk to live ABS & MBS case.

·        Characteristics of various Asset Based Securitization (ABS)Pools – CV, PL, Tractor, MFI, Construction Equipment, SME – Secured/Unsecured

·       Characteristics of Mortgage Based Pools – HL, AHL & LAP

·        CARE Ratings perspective of COVID impact on pool behavior.

Day 2:

Structure of Securitization transactions

·       Other Risks & Mitigation - Liquidity risk, Interest rate risk, Re-investment risk, Prepayment Risk,

·       Counterparty Risk – SPV, Servicer & CE provider, Legal Risk, Regulatory Risk.

·       The Cash Flow waterfall

·       Credit enhancements  - External sources, Internal Sources, Choosing Optimum, Investors Preferences

·       MRR vs. Credit Enhancement

·       Capital Treatment – Buyer/Seller

·       Legal documentation of a true sale; bankruptcy remoteness

Regulatory & Legal Documentation

·       Mosec / Revolving Securitization

·       Synthetic Securitization

·       Regulatory Guidelines on Due Diligence by Buyer  - Assignments & PTC

·       Mandated Minimum Disclosures.

·       Post Deal Monitoring Pool Performance.

·       Regulatory response to NBFC crises – Partial Credit guarantee & Targeted Long Term Repo Operations (TLTROs)

·       RBI Draft Guidelines – Paradigm Shift in Securitization ecosystem towards efficient secondary market for loans

TRAINER PROFILE:

 

S.K.V SRINIVASAN

S.K.V Srinivasan is a Commercial Banking Leader with over 35 years of experience including 8 years in strategic C-Suite roles as Executive Director in a Large PSU bank covering Retail Banking, Business Banking, Corporate Banking & Project Finance, Micro Finance Institution, Securitization, Trade Finance, Priority Sector, Corporate BC Business &  Financial Inclusion.

The trainer is a subject matter expert with hands on experience in this area and has the distinction of setting & scaling up centralized securitization & MFI Business department for a large bank encompassing framing policies, SOPs for risk containment & regulatory compliance and training people.

The trainer is associated with CARE for over last 3 years having handled several training programmes in SME, Corporate Credit, Working capital appraisal and Project Finance.  

SRIRAM RAJAGOPALAN

Sriram Rajagopalan is a Chartered Accountant with 15 years of work experience, with over a decade of direct involvement in the Indian securitization market as a credit analyst from a rating perspective as well as an investor's perspective. Currently, he heads the securitization ratings team in CARE Ratings.  

He has in-depth knowledge of securitization structures and hands on experience of analyzing close to 500 PTC and Direct Assignment transactions across various asset classes.

He has also worked on refining pool selection criteria for PTC transactions and Inter Bank Participatory Certificates (IBPCs) from an investing bank's perspective.