Definition

Securitisation (Ro.: securitizare, Fr.: titrisation, s.f., Cz.: sekuritizace) (See also: asset-backed securities, mortgage-backed securities, securities) = represents a financing process that allows the owner of certain assets (originator) to pool and sell them to a SPV ('special purpose vehicle', which is usually an entity set-up by financial institutions for such purchases– the issuer). 

The SPV pays the originator after issuing tradable securities (securities that are backed by the asset pools) that are sold on the capital market. 

 

Useful links

Legislation

http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8950 – Maltese Securitisation Act, 2006 [English]

http://www.legislation.gov.uk/uksi/2006/3296/crossheading/meaning-of-securitisation-company-and-related-expressions/made - The Taxation of Securitisation Companies Regulations, 2006, UK [English]

http://www.legislation.gov.uk/uksi/2007/3338/contents/made - The Securitisation Companies Regulations, 2007, UK [English]

http://legis.la.gov/lss/newWin.asp?doc=727716 – Louisiana Electric Investment Recovery Securitization Act, USA [English]

http://www.lege-online.ro/lr-LEGE-31%20-2006-(69771).html – Law 31/2006, Romania [Romanian]

http://www.iras.gov.sg/irasHome/uploadedFiles/Quick_Links/Tax_Acts/Stamp%20Duties%20(Approved%20Securitisation%20Company)%20(Remission)%20Rules%202008.pdf - Stamp Duties (Approved Securitisation Company) (Remission) Rules 2008, Singapore [English]

Organisations and associations

http://www.americansecuritization.com/ - American Securitization Forum (USA)

http://www.ey.com/Publication/vwLUAssets/EY-Tax-Alert-26-December-2013-Eng/$FILE/EY-Tax-Alert-26-December-2013-Eng.pdf - Russian Securitization Law, 2013, Ernst & Young (UK)

http://www.newyorkfed.org/research/staff_reports/sr318.pdf - Ashcraft, Adam B., Schuermann, Til, 2008, Understanding the Securitization of Subprime Mortgage Credit, Federal Reserve Bank of New York (USA)

http://www.pwc.lu/en/securitisation/index.jhtml - Securitisation, PwC Luxembourg

Online Publications

https://www.law.ox.ac.uk/published/lectures/LeverhulmeLecture-FutureOfSecuritsation.pdf - Schwarcz, Steven L., 2010, The future of securitization, Leverhulme Lecture, Oxford University

http://www.orrick.com/Events-and-Publications/Documents/Amendments-to-the-Italian-Securitisation-Law-introduced-by-the-Destinazione-Italia-decree.pdf - Amendments to the Italian Securitisation Law introduced by the 'Destinazione Italia' decree

Publications

Gorton, Gary B., 2010, Metrick, Andrew, Securitized Banking and the Run on Repo, USA, Market Institutions and Financial Market Risk National Bureau of Economic Research, Inc.

Fabozzi, Frank J. and Kothari, Vinod, 2007, Securitization: The Tool of Financial Transformation, Journal of Financial Transformation

Gorton, Gary B., Souleles, Nicholas S., 2006, Special Purpose Vehicles and Securitization, The Risks of Financial Institutions, Carey and Stulz

Martin, John D., 2009, A Primer on the Role of Securitization in the Credit Market Crisis of 2007, Working Paper

 

By Alexandru Coraș