Why should I choose AnalystNotes?

Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.

Find out more
Subject 7. Credit Analysis for Securitized Debt PDF Download
Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, receivables, auto loans or credit card debt obligations, and selling their related cash flows to third party investors as securities.

A credit analyst should first consider the underlying asset types and characteristics.

  • Homogeneity: Are the underlying assets homogeneous or heterogeneous?
  • Granularity: What is the number of obligations/creditors?
  • Asset type and tenor.

Secondly, the analyst should evaluate the creditworthiness of the the originator and servicer.

Finally, the structure of the securitized debt should be considered. What is the relationship of the issuer to the originator? Any additional credit enhancements in place?

User Contributed Comments 0

You need to log in first to add your comment.
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

My Own Flashcard

No flashcard found. Add a private flashcard for the subject.

Add

Actions