What is securitisation

The essence of securitisation

Securitisation is the process of "converting" non-standard assets into standardised securities which may be acquired by institutional or individual investors. It emerged in the United States in the mid-1970s – then government agencies, among others, the Government National Mortgage Association and the Federal Home Loan Mortgage Corp., conducted the first transactions of its kind on the market. The securitisation process requires three elements:

  • the organiser (e.g. an investment bank, financial institution) which creates a securitisation fund (vehicle),
  • the investor who is willing to buy securities issued by the vehicle (certificates),
  • assets providing the right to a stream of payments in the future, which will be acquired by the vehicle.

Object of securitisation

The object of securitisation can be any assets that have any value and may regularly generate predictable cash flows in the future. Successful securitisation in the world covers both instruments of the financial market (e.g. receivables, loans, mortgages, license fees) and instruments, for instance, under leasing contracts, revenue from charges of rental properties, fees for health care, gas, electricity and telecommunications services.

Securitisation in Poland

In Poland, the entity that creates a securitisation fund can only be an Investment Fund Company (TFI), and the supplier of receivables (bank) may sell the same only to a securitisation fund. If it sells such assets to another vehicle (joint stock company, limited liability company, foreign entity), it automatically loses tax benefits.

A securitisation fund remains in close relationships with the debt collection company, which most often at the same time initiates its creation and handles receivables purchased by it. The fund may purchase assets of any type, however, in practice, an overwhelming number of transactions of this type in Poland (due to the possibility of obtaining tax benefits) are related to bank receivables.

www.egb.pl

Używamy plików cookies. Dowiedz się więcej. Korzystając ze strony wyrażasz zgodę na używanie cookies zgodnie z aktualnymi ustawieniami przeglądarki. Zamknij