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Provided by: FitchTraining Understanding Securitization ABS USAccounting and Finance |
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Training
Provided by FitchTraining
This one-day introductory workshop provides an overview of securitization and a framework for evaluating ABS.
Related Awards, Degrees or Certifications: Earn CPD credits
We are an accredited training provider with a number of institutions including:
ACCA
NASBA
Securi
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Understanding Securitization ABS US
Course Objectives
Participants will be equipped to:
Use a structured approach to understand ABS (using credit card ABS as the illustration asset class): basic transaction structures, roles of the parties, and originator motivations
Recognize the main risks pertaining to the collateral, originator and servicer
Appreciate how asset characteristics and desired ratings impact credit enhancement levels
Identify key risks and understand how they are allocated within ABS structures
Review various government and private sector programs including TALF.
Target Audience
An introductory workshop for those new to the securitization market or seeking an understanding of the ABS product.
Fitch Training offers this programme at an introductory level. There are no prerequisite courses or knowledge to attend this course.
Content
INTRODUCTION
Why securitization? Originator and investor motivations
Parties to the transaction and their roles
Overview of securitization market.
PURPOSE: PAYBACK
Analytic approach to credit
Introducing a structured approach to analysis: purpose, payback, risk and structure
Application of the structured approach to various types of ABS securities.
RISKS TO REPAYMENT
Collateral
Analytic focus: credit card ABS
Key performance variables: applying steady state assumptions and credit stresses
Understanding how credit enhancement is sized
Modelling the impact of various stress scenarios across different credit card portfolios
Originator / servicer evaluation
Company analysis: commercial and financial viability
Risks arising from the business model
Servicer ratings: why, how and impact on credit enhancement
Structure
Credit enhancement (CE)
Understanding the role and various forms of CE
Unravelling CE across asset classes (credit card, auto, and mortgage transactions)
Clarifying loss allocation
Safeguards: ensuring credit enhancement mechanisms provide adequate protection
Note Profile
Cash-flow waterfalls: Amortizing and non-amortizing assets
Cash flow allocation mechanics
Trust structures: master, owner and issuance
Early amortization triggers: how they are set and how they operate
Legal Safeguards
Key legal safeguards: isolation of assets
Reps and warranties.
MONITORING PERFORMANCE
Surveillance: collateral, originator / servicer
Interpreting performance to identify early warning signals
Overview of performance across asset classes.
RELATIVE VALUE
Pricing of ABS transactions: risk vs. return
Credit trends in ABS: pockets of risk.
Participants will be equipped to:
Use a structured approach to understand ABS (using credit card ABS as the illustration asset class): basic transaction structures, roles of the parties, and originator motivations
Recognize the main risks pertaining to the collateral, originator and servicer
Appreciate how asset characteristics and desired ratings impact credit enhancement levels
Identify key risks and understand how they are allocated within ABS structures
Review various government and private sector programs including TALF.
Target Audience
An introductory workshop for those new to the securitization market or seeking an understanding of the ABS product.
Fitch Training offers this programme at an introductory level. There are no prerequisite courses or knowledge to attend this course.
Content
INTRODUCTION
Why securitization? Originator and investor motivations
Parties to the transaction and their roles
Overview of securitization market.
PURPOSE: PAYBACK
Analytic approach to credit
Introducing a structured approach to analysis: purpose, payback, risk and structure
Application of the structured approach to various types of ABS securities.
RISKS TO REPAYMENT
Collateral
Analytic focus: credit card ABS
Key performance variables: applying steady state assumptions and credit stresses
Understanding how credit enhancement is sized
Modelling the impact of various stress scenarios across different credit card portfolios
Originator / servicer evaluation
Company analysis: commercial and financial viability
Risks arising from the business model
Servicer ratings: why, how and impact on credit enhancement
Structure
Credit enhancement (CE)
Understanding the role and various forms of CE
Unravelling CE across asset classes (credit card, auto, and mortgage transactions)
Clarifying loss allocation
Safeguards: ensuring credit enhancement mechanisms provide adequate protection
Note Profile
Cash-flow waterfalls: Amortizing and non-amortizing assets
Cash flow allocation mechanics
Trust structures: master, owner and issuance
Early amortization triggers: how they are set and how they operate
Legal Safeguards
Key legal safeguards: isolation of assets
Reps and warranties.
MONITORING PERFORMANCE
Surveillance: collateral, originator / servicer
Interpreting performance to identify early warning signals
Overview of performance across asset classes.
RELATIVE VALUE
Pricing of ABS transactions: risk vs. return
Credit trends in ABS: pockets of risk.
About The Training Provider: FitchTraining
FitchTraining - Fitch Training is a specialist training firm focused on the provision of credit and corporate finance training. Courses are offered in three areas: financial institutions, corporate credit and securitization. Fitch Training is part of Fitch Solutions, a division of the Fitch Group. We also work in partnership with Fitch Solutions to provide quantitative training.
Fitch Training operates...
