AFM

Question 1

steps involved in securitsation mechanism

Answer 1

1. Creation of pool of assets
   2.Transfer of assets to spv
   3.sale of securitised papers
   4.admin of assets
   5.recourse to originator
   6.repayment of funds
   7.credit rating of instruments

CTS ARRC

Question 2

secondary participants in securitisation

Answer 2

1.Obligors
2.Rating agency
3.RPA
4.Agent or trustee
5.credit enhancer
6.structurer

Question 3

features of securitisation

Answer 3

1.bundling and unbundling
2.creation of FI
3.tool of risk mgt
4.structured finance
5.trenching
6.homogenity

RT-the process flow chart of funds