re-securitization definition
re-securitization means any “traditional securitization” (as defined in CAR A-1) where any material portion of the assets owned by the SPE is itself a securitization exposure and any “synthetic securitization” (as defined in CAR A-1) where any material portion of the underlying assets to which investors are ultimately exposed (e.g. due to a credit default swap or due to the assets purchased and posted as collateral under such a credit default swap) is a securitization exposure. For example, a securitized collateralized debt obligation (CDO) interest in a pool of asset-backed securities (ABS) with underlying loan receivables, and a liquidity facility for the CDO, would both be a re-securitization exposure as the ABS is itself a securitization exposure; conversely, a liquidity facility for the ABS would not be a re-securitization as the loan receivables are not a securitization exposure.
re-securitization means the process of pooling already-securitized financial instruments and creating new financial instruments that are repaid from the collection or other liquidation of the already-securitized financial instruments.