Introduction to Securitization: 174 (Frank J. Fabozzi Series) - Hardcover

Über die Autorin bzw. den Autor

Frank J. Fabozzi, PhD, CFA, CPA, is Professor in the Practice of Finance at Yale University's School of Management, Editor of the Journal of Portfolio Management, and Associate Editor of the Journal of Structured Finance and the Journal of Fixed Income.

Vinod Kothari, chartered accountant, is an author, trainer, and consultant on securitization, asset-based finance, credit derivatives, and derivatives accounting. Kothari is a visiting faculty member at the Indian Institute of Management, where he teaches structured finance.

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Introduction to Securitization

A comprehensive overview of securitization

With this book, Frank Fabozzi and Vinod Kothari bring togethertheir extensive expertise in this field to present asset andfinancial managers, as well as finance students, with comprehensiveinformation on one of the most important topics in modern-dayfinance.

Introduction to Securitization outlines the basics ofsecuritization, addressing applications for this technology tomortgages, collateralized debt obligations, future flows, creditcards, and auto loans. The authors present a comprehensive overviewof the topic based on the experience they have gathered throughyears of interaction with practitioners and graduate studentsaround the world. The authors offer coverage of such key topics as:structuring agency MBS deals and nonagency deals, creditenhancements and sizing, using interest rate derivatives insecuritization transactions, asset classes securitized, operationalrisk factors, implications for financial markets, and applyingsecuritization technology to CDOs. Finally, in the appendices, theauthors provide an essential introduction to credit derivatives, anexplanation of the methodology for the valuation of MBS/ABS, andthe estimation of interest rate risk.

Aus dem Klappentext

Securitization is a financial technique that pools assets togetherand, in effect, turns them into a tradable security. The end resultof a securitization transaction is that a corporation can obtainproceeds by selling assets and not borrowing funds. In real life,many securitization structures are quite complex and enigmatic forpractitioners, investors, and finance students. Typically, booksdetailing this topic are either too lengthy, too technical, or toosuperficial in their presentation. Introduction to Securitizationis the first to offer essential information on this topic at afundamental, yet comprehensive level—providing readers with aworking understanding of what has become one of today's mostimportant areas of finance.

Authors Frank Fabozzi and Vinod Kothari, internationallyrecognized experts in the field, clearly define securitization,contrast it with corporate finance, and explain its advantages.They carefully illustrate the structuring of asset-backedsecurities (ABS) transactions, including agency mortgage-backedsecurities (MBS) deals and nonagency deals, and show the use ofcredit enhancements and interest rate derivatives in suchtransactions. They review the collateral classes in ABS, such asretail loans, credit cards, and future flows, and discuss ongoingfunding vehicles such as asset-backed commercial paper conduits andother structured vehicles. And they explain the different types ofcollateralized debt obligations (CDOs) and structured credit,detailing their structuring and analysis. To complement thediscussion, an introduction to credit derivatives is alsoprovided.

The authors conclude with a close look at securitization'simpact on the financial markets and the economy, with a review ofthe now well-documented problems of the securitization of one assetclass: subprime mortgages. While questions about the contributionof securitization have been tainted by the subprime mortgagecrisis, it remains an important process for corporations,municipalities, and government entities seeking funding. Thesignificance of this financial innovation is that it has been animportant form of raising capital for corporations and governmententities throughout the world, as well as a vehicle for riskmanagement. Introduction to Securitization offers practitioners andstudents a simple and comprehensive entry into the interestingworld of securitization and structured credit.