traditional securitization definition
traditional securitization. - means the one that involves the legal or economic transfer of assets or obligation by an originating institutions to a third party, typically referred to as a “Special Purpose Vehicles (SPV) “. An SPV issues assets backed securities, which are claims against specific asset pool.
traditional securitization means a securitization transaction where –
traditional securitization means a securitization involving the economic transfer of the exposures being securitized to a securitization special purpose entity, which issues at least two types of securities reflecting different tranches. This shall be accomplished by the transfer of ownership of the securitized exposures from the originator bank or through sub-participation. The securities issued shall not represent payment obligations of the originator bank.
More Definitions of traditional securitization
traditional securitization means a structure where the cash flow from an underlying pool of exposures is used to service at least two different stratified risk positions or tranches reflecting different degrees of credit risk and where payments to the investors depend upon the performance of the specified underlying exposures, as opposed to being derived from an obligation of the entity originating those exposures;