9. Governments may find this asset class attractive because, when planned and executed ahead of time, it can provide a way of accessing markets during times of liquidity crisis.There are also significant externalities associated with future flow deals.By clarifying the legal and institutional environment surrounding a developing country issuer, such deals can pave the way for future deals by other issuers as well. Because of their investment grade rating, future flow deals attract a much wider class of investors than unsecured deals.Thus, future flow deals can improve market liquidity and reduce market volatility. That can generate added interest on the part of international investors in other asset classes or other borrowers.本文来自辣.文,论-文·网原文请找腾讯32491.14
I.7 The plan of this paper is as follows.In section II we describe a typical structure of a future flow-backed securitization that mitigates the most common elements of sovereign risk, thereby permitting a credit rating above the sovereign ceiling. In this section, we also examine the ratings implications of any residual risks that cannot be structured away. In section III, we examine principal characteristics of future flow securitizations by developing country entities that were rated by Fitch IBCA, Duff & Phelps (Fitch), Moodys and Standard & Poor’s (S&P). The rationale for securitization is discussed in section IV. We estimate the potential size of this asset class in section V,and outline various constraints that have prevented the asset class from reaching its potential in section VI. Finally, in section VII we take up a number of public policy issues relevant to facilitating future flow securitization in the years to come.
II. Risk Mitigation in Securitized Transactions
II.1 International future flow securitizations are structured debt offerings sponsored by
论文范文http://www.chuibin.com/ a foreign originator and secured by receivables due from designated international obligors. A typical future flow structure is set out in Chart 1. It involves the originating entity in a developing country selling its future product (receivable) directly or indirectly to an offshore Special Purpose Vehicle (SPV). The SPV issues the debt instrument.Designated international customers are directed to pay for the product from the originating entity directly to an offshore collection account managed by a trustee. The collection agent makes principal and interest payments to the investors. Excess collections from obligors are directed to the originator via the SPV.
II.2 Risk mitigation in securitized transactions occurs via the structure of the transaction as well as the choice of the future flow receivable to be securitized. Since payments on the receivables do not enter the issuer’s home country, the rating agencie believe that the structure mitigates the usual sovereign transfer and convertibility risks. The structure described above also mitigates the bankruptcy risk because the SPV has typically no other creditors and hence cannot go bankrupt. Of course, the risk of the originator going bankrupt exists.Such risk is mitigated in part by seeking originators with high local currency (domestic) credit ratings. Furthermore, legal experts in many developing countries have opined that creditors will continue to have access to the pledged security even after a bankruptcy petition is filed.
II.3 However, a number of residual risks such as performance risk, product risk and sovereign risk remain and they are difficult to structure away.
II.4 Performance Risk: The ability and willingness of the originator to produce and deliver the product is generally captured in the issuer’s local currency rating. But fo certain entities such as banks, Fitch uses the going concern and S&P the "survival"assessment of the originating entity in rating an asset-backed transaction higher than the issuer’s local currency rating.This reflects the belief that in many countries financia default does not lead to liquidation of an entity.In other words, an entity may continue to generate receivables (that are captured by the offshore trust) even when it is in financial default. This is particularly applicable to sovereign or sub-sovereign entities and public sector companies.
II.5 Product Risk: A number of factors can reduce the product risk. For instance, the product risk will be lower if there is either a stable or an increasing demand for the product.If the issuer has a competitive cost advantage, that would be an additional plus.Finally, it is also helpful if a long-term purchasing contract from a reputable buyer underpins the demand.
上一页 [1] [2] [3] [4] [5] [6] [7] [8] 下一页
应收账款证券化英文文献和翻译 第4页下载如图片无法显示或论文不完整，请联系qq752018766
