Securitisation—financial assets for securitisation
Securitisation—financial assets for securitisation

The following Banking & Finance guidance note provides comprehensive and up to date legal information covering:

  • Securitisation—financial assets for securitisation
  • Cash-generating asset types
  • Asset due diligence
  • Rating agency criteria

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. As a third country, the UK can no longer participate in the EU’s political institutions, agencies, offices, bodies and governance structures (except to the limited extent agreed), but the UK must continue to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements) and submit to the continuing jurisdiction of the Court of Justice of the European Union in accordance with the transitional arrangements in Part 4 of the Withdrawal Agreement. For further reading, see: Brexit—introduction to the Withdrawal Agreement. This has an impact on this Practice Note. For guidance, see Practice Note: Brexit—impact on finance transactions—Brexit planning and impact—financial services, Brexit—impact on finance transactions—Key issues for securitisation transactions and Brexit—impact on finance transactions—Derivatives and debt capital markets transactions—key SIs.

Cash-generating asset types

Overview

In principle, any cash-generating asset can be securitised. Even an art collection could be securitised on the assumption it can be sold to generate cash (indeed, the city of Detroit considered doing just that with the Detroit Institute of Art's collection).

Securitisations however tend to relate to a pool of more conventional assets