Securitisation in its simplest form is the creation of asset backed securities. Asset backed securities are debt securities that are backed by a stream of cashflows from pools of financial assets. The limited recourse notes are normally issued by a bankruptcy-remote special purpose vehicle owned by a foundation or a charitable trust. The proceeds from the notes issued (normally several different classes with different levels of reward and risk attached to them) are used to acquire the underlying financial assets. It is intended the cashflows from the assets will cover the interest and capital requirements of the structure as well as the general running costs. The notes issued may be rated and quoted.

If there is a problem with obtaining title to the financial assets within the asset pool it is possible to gain exposure to the same assets by use of a swap giving rise to a synthetic securitisation transaction.

The main areas of Securitisation are

• Residential Mortgage-Backed Securities (RMBS) - the asset pool would normally consist of residential mortgages
  
  
• Commercial Mortgage-Backed Securities (CMBS) - the asset pool would normally consist of commercial mortgages
  
  
• Collateralised Loan Obligations (CLO) - the asset pool would normally consist of a pool of loans
  
  
• Collateralised Bond Obligations (CBO) - the asset pool would normally consist of a pool of high yield bonds
  
  
• Collateralised Debt Obligations (CDO) - the asset pool would normally consist of a pool of bonds and loans of different maturities and credit quality
  
  
• Trade receivables securitisation - the asset pool would normally consist of a pool of trade receivables (examples would be car or aircraft lease receivables)

Ogier has experience in establishing and successfully administering all of the above types of Securitisation vehicles and can provide the following services in this respect:-

Services

• Incorporation of SPVs, ICCs and PCCs (and further cells once incorporated).
  
  
• Establishment of charitable trusts, foundations and limited partnerships.
  
  
• Registered office, registered agent, secretarial and registrar services.
  
  
• Provision of directors (individual or corporate) and trustees.
  
  
• Bookkeeping and preparation of financial statements.
  
  
• Cash management and treasury services.
  
  
• Agent for service of process.
  
  
• Escrow / nominee services.
  
  
• General corporate administration services.