The mechanism of Securitization
Although securitizations are able to adopt various forms depending on the individual case, securitizations in general involve a) an originator (the person or entity who initially owns the assets), b) a pool of assets (e.g. loans), c) a special purpose vehicle or “SPV” (a company set up for the single purpose of holding the pool of assets) and d) investors (who provide risk capital to the SPV and receive notes providing rights to interest and principal payments from the SPV). In most carefully structured securitizations, there also are additional service providers involved, such as a paying agent (e.g. a bank) who handles cash flows for the SPV.
Kaiser Partner Privatbank is an established partner acting as a Paying Agent. In this role, we handle all payments (denoted as in the illustration above) from the SPV to its investors such as principals and interest payments. We will also obtain ISINs for the SPV (ensuring easy transferability of the notes), take care of any corporate actions relating to the notes as well as handle the process at maturity. Furthermore, we are also happy to advise you on the structuring of your securitization.
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Meet our Securitization team: Elodie Hasler and Rainer Nachbauer.
