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From jake: Does your bank own the note to your home, car, or credit card? http://www2.fdic.gov/efoiarequest/index.asp
http://www.chicagofed.org/digital_assets/publications/chicago_fed_letter/2010/cfljanuary2010_270.pdf
In both credit card and auto loan securitizations,
the financial institution (also known as the originator, transferor, seller, or sponsor) accumulates a significant volume of receivables, and transfers these receivables to a wholly owned special-purpose entity (SPE). Importantly, these entities are insulated from the lenders� bankruptcy risk. The SPE then transfers the receivables to a securitization vehicle�
typically a qualified SPE trust, or QSPE (figure 2).5 The trust packages the receivables and issues investor certificates (sold to investors) and trust certificates (retained by the transferor or affiliate and called the seller�s interest). Proceeds from the sale of the investor certificates go to the trust. The trust in turn pays the financial institution (seller) for the purchase of the underlying receivables.
Added: 8:59 AM, March 8th, 2010
loans unveiled
asset backed securities
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