Securitization; For Funding & Risk Sharing Dinesh Warusavitharana‚ CFA What is securitization ? Securitization is the pooling of cash flows and the issuance of securities backed by underlying assets. The repayment of securities is solely dependent on the performance of the assets Securitization de-links the credit risk of the issuer from the securitization transaction Basic Model of Securitization Borrowers (Obligors) Receivables Originator (Bank/FI) Loan Cash Liquidity Support
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1. By Chris Gallant on February 26‚ 2009 http://www.investopedia.com/ask/answers/07/securitization.asp Definition of Securitization What is securitization? Securitization is the process of taking an illiquid asset‚ or group of assets‚ and through financial engineering‚ transforming them into a security. A typical example of securitization is a mortgage-backed security (MBS)‚ which is a type of asset-backed security that is secured by a collection of mortgages. The process works
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Securitization Market in India Securitization issuance in emerging markets Country Issuance in $bn Asia Taiwan South Korea India Singapore Malaysia Indonesia Japan 1.9 26 6.67 1.2 0.4 0.6 81 Brazil Mexico Argentina Chile Peru Columbia Others Country Issuance in $bn Country Issuance in $bn EEMEA Latin America 4.8 4.3 1.5 0.9 0.7 0.5 1.3 Turkey 4.5 2.2 1.7 0 0.2 South Africa Egypt Russia Others Asia 117.77 Latin America 14 EEMEA 8.6 Emerging markets total
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Securitization in India – Opportunities & Obstacles A Discussion paper V. Sridhar PGP 2002‚ IIM Calcutta Securitization in India – Opportunities & Obstacles Page 2 of 2 Acknowledgement I would like to thank Mr. Manoj Dengla from ICICI Structured Products Group whose valuable insights have made this paper possible. I am also thankful to Mr. Pranay Agrawal and Mr. V. Srikanth of Fractal Technologies Ltd. for narrating their securitization experience. 2 Securitization in India
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GLOBAL FINANCIAL CRISES AND THE FUTURE OF SECURITIZATION Contents 1. Introduction……………………………………………………………………...3 2. Overview………………………………………………………………………...3 3. Structured-finance securitization ………………………………………………..5 4. Key segments of the securitization market………………………………………6 5. Rating Agencies Deficiencies....................………………………………………8 6. Future of Structured-finance securitization……………………………..……...10 7. Conclusion................................................…………………………………...…11
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Asset securitization is a financial innovation aimed to improve liquidity and raise funds. It is a technology and process of structuring illiquid assets that can produce predictable and stable cash flows‚ reallocating risks and benefits‚ providing corresponding credit guarantees‚ and ultimately issuing securities to raise funds with the illiquid assets as underlying assets. In a narrow sense‚ asset securitization generally refers to securitization of credit assets‚ including mortgage-backed asset
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Case 5: Harley –Davidson 1) Harley Davidson has an untypical relationship with the union. Continuous improvement techniques could have been stopped if the company did not have a good relationship with the union. The union viewed management as a partner instead of an adversary. Harley Davidson appears to be using a Focused differentiating strategy. A differentiating strategy is present when a business seeks to be unique in its industry
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Introduction: Harley Davidson Inc is the leading motorcycle company in the United States‚ with an approximate 46% market share. It derives its revenue from the sale of motorcycles to dealers‚ the sales of parts and Harley Davidson accessories‚ and the financing of approximately 53% of its U. S. Consumer motorcycle purchases. Harley Davidson stock sold for P12.70 per share in late March 2009‚ down from a high of $70 in October 2007. Harley Davidson like manufacturers of big-ticket items has been hurt
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general public an expanding line of motorcycles‚ branded products and services in selected market segments Vision Statement “Harley-Davidson is an action-oriented‚ international company‚ a leader in its commitment to continuously improve [its] mutually beneficial relationships with stakeholders (customers‚ suppliers‚ employees‚ shareholders‚ Government‚ and society). Harley-Davidson believes the key to success is to balance stakeholders’ interests through the empowerment of all employees to focus
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Situational analysis Harley Davidson‚ an international motorcycle company‚ started out as a small three man operation in 1903‚ by the Davidson brothers and William Harley manufacturing heavyweight motorcycles. This included financial services for the motorbikes‚ accessories and branded apparel. It experienced great success during both World Wars‚ and managed to survive the trying times of the Great Depression. After World War II‚ Harley Davidson brand begin to build on the image of the V-twin
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