See "Asset backed security".
In revolving assets securitization and future flows securitization, is the underlying covenant by which the repayment of principal (amortisation) to the investors will became immediately due upon the happening of certain events such as a fall in the degree of over-collateralisation, under-performance events, etc.
The bank which takes on the role of the administration of the loan on behalf of the participants to a securitization transaction.
Repayment of the principal of a debt in periodic instalments as opposite to a Bullet or Balloon repayment structure.
The financial institution (bank or other) which agrees to structure a securitization transaction.
Asset backed commercial paper (ABCP)
An asset backed security issued in the form of commercial paper.
Asset backed security (ABS)
Security issued under a securitization transaction where payment is secured against a pool of assets. May take the form of a pass-through, a pay-through or a cash flow bond. In the United States it is common to distinguish between ABS and mortgage back securities (MBS). In the other markets (and in this glossary, too) the word ABS may cover all classes of securitesed instruments. Asset class The typology of financial assets that support payments on the asset backed securities. Typical asset class are mortgage loans, trade receivables, credit card balances, consumer loans, lease receivables, automobile loans.
An instalment repayment structure for a securitization transaction under which the final redemption of securities or the final repayment instalment is set at a greater amount than that of earlier redemptions or instalments.
It is the basis rate used by a financial institution to price the interest rate it charges for different types of loan typically priced as certain percentage (or certain number of basis point) other the basis rate.
A principal repayment structure which repays the entire principal on the maturity date.