Sentences with phrase «securitized assets»
Securitized assets refer to financial securities that are created by pooling together a group of similar assets, such as mortgages, loans, or leases. These assets are then packaged and sold to investors in the form of bonds or other tradable instruments. The income generated from these underlying assets is used to pay the investors who purchased the securitized assets. Full definition
Securitization is an area that almost perfectly fits this description; markets for securitized assets such as subprime mortgages completely collapsed in 2008 and have not fully recovered.
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However, these gains were partially offset by a decline in the holdings of revolving credit by finance companies and pools of securitized assets.
Securitized assets such as mortgages, properties or whole businesses, are another way of reducing risk as lenders are higher up the capital structure, and management is restricted on what can happen to the assets.
Further, some high - cash - flow securitized asset markets continue to appear attractive.
The upshot of all this is that IF investors successfully put back these investments onto the banks, then this undermines the case for securitization — accountants will be hard - pressed to justify putting securitized assets «off balance sheet.»
CMBS are more carefully underwritten and serviced than other securitized asset classes.
This includes 2nd mortgages, securitized asset holders (Fannie Mae or Freddie Mac) and even private mortgage insurance companies.
I think the complexities of the reverse auctions on small illiquid distressed securitized assets will prove difficult.
Securitization deserves special treatment: risk based capital should higher for securitized assets versus unsecuritized assets in a given ratings class, because of potentially higher loss severities, and assets that are originated to securitize are always lower quality than those held on balance sheet.
However, the increase over this period partly reflects a shift of consumer credit from pools of securitized assets to other categories that was largely due to financial institutions» implementation of the FAS 166/167 accounting rules.
Often times, the securitized assets are divided into different layers, or tranches, tailored...
This would seem to imply to me that securitized assets were, as a rule, moved off the books.
His most recent role included coordination of strategy across all fixed income, securitized assets, credit, FX and commodities.
We have reduced the fund's credit exposures in favor of income - oriented strategies on the front end of the curve as well as mortgages and securitized assets, which we believe should continue to experience strong demand as we are still in a low yield environment relative to historical norms.
That said, they can also buy shares of housing finance companies or their securitized assets.
In our view, rate - hedged municipal bonds are still attractive in a balanced portfolio for carry (after - tax) as are securitized assets, which are largely impervious to rate and beta volatility.
Risk based capital should higher for securitized assets versus unsecuritized assets in a given ratings class, because of potentially higher loss severities.
That said, securitized assets are typically most liquid near the issuance of the deal, with the short, simple and AAA portions of the deal retaining their liquidity best.
We have reduced the fund's credit exposures in favor of income - oriented strategies on the front end of the curve as well as mortgages and securitized assets, which we believe should continue to experience strong demand as we are still in a low yield environment relative to historical norms.
His most recent role included coordination of strategy across all fixed income, securitized assets, credit, FX and commodities.
Our practice knowledge covers a wide variety of financial products and financing instruments, including secured and unsecured loans, note issuances, agent - led loan syndications, securitized assets, credit enhancement and derivative / swap products, cash management services arrangements, and municipal securities.
A startup called TrustMe is developing a land registry and exchange for London which will allow owners to sell blocks of their properties as a securitized asset using bitcoins.
Part of the increase reflects a November 2010 shift of consumer credit from pools of securitized assets to other categories largely due to financial institutions» implementation of the FAS 166/167 accounting rules.