New York University-University of Torino

Asset-Backed Securities

June 1-4, 1999

Prof Ian Giddy
Stern School of Business, New York University

Module Description

Asset-backed securities constitute a growing segment of the European and global capital markets. The asset securitization technique, while complex, has won a secure place in corporate financing and investment portfolios because it can, paradoxically, offer originators a cheaper source of funding and investors a superior return. Not only does securitization transform illiquid assets into tradeable securities, but it also manages to transform risk by means of the separation of good financial assets from a company or financial institution with little loss of revenue. The assets, once separated from the originator, are employed as backing for high-quality securities designed to appeal to investors.

This module asks why and when corporations and financial institutions should issue asset-backed securities, and which kind of such instruments make sense to investors. In two information-packed days of instruction and application, we hope to offer an economic cost-benefit analysis of the technique, an insight into the legal, accounting, tax and regulatory principles, the risks and how they can be managed, and a roadmap for choosing this technique over others in today's capital market.

Materials

Participants will be provided with a package of materials useful to the structuring and analysis of asset-backed deals, including pertinent articles, rating agency reports and sample documentation from actual deals done in Europe and elsewhere.

Instructor

Ian Giddy is a professor of finance at New York University, USA. He has taught finance at NYU, Columbia, Wharton, Chicago and abroad for the past twenty-two years. He was Director of International Fixed Income Research at Drexel Burnham Lambert from 1986 to 1989. The author of more than fifty articles on international finance, Dr Giddy has served at the International Monetary Fund and the U.S. Treasury and has been a consultant with numerous financial institutions and corporations in Europe, the U.S. and Asia. He is the author or co-author of The International Money Market, The Handbook of International Finance, Cases in International Finance, Global Financial Markets and The Hudson River Watertrail Guide. He is currently completing a book on asset securitization in Asia.
 

Schedule
 
Date Topics
Tuesday 
June 1
  • Corporate Finance and the Economics of Asset Securitization
  • The Key Elements of ABS
  • The Securitization Process
Wednesday 
June 2
  • Cost-Benefit Analysis
  • Legal, Tax, Accounting and Disclosure Aspects of ABS
Thursday 
June 3
morning
  • Structuring and Pricing Asset-Backed Securities: Case Studies in Different Countries and with Different Assets
  • Managing the Credit Risks
Thursday 
June 3
afternoon
  • Managing the Non-Credit Risks in Asset-Backed Securities
Friday
June 4
  • New Applications of the ABS Techniques
  • Summary and Outlook for the ABS Market

Module Content


Tuesday 

Corporate Finance and the Economics of Asset Securitization

The Key Elements of Asset-Backed Securities The Securitization Process


Wednesday 

Cost-Benefit Analysis

Legal, Tax, Accounting and Disclosure Aspects of ABS


Thursday morning 

Structuring and Pricing Asset-Backed Securities: Case Studies in Different Countries and with Different Assets

Credit Risk Management in Asset-Backed Financing


Thursday afternoon 

Non-Credit Risk Management in Asset-Backed Financing

Friday 

Asset-Backed Infrastucture Financing

New Directions in Asset-Backed Securities Summary and Outlook for the ABS Market


Other resources on asset securitization:
http://giddy.org/abs Powerpoint presentation documents
Articles Case studies
Spreadsheets Internet links

Ian H. Giddy | Ian Giddy's professional workshops | Ian Giddy's on-line courses | The Stern School of Business | Executive Development Programs at Stern

Go to Giddy's Web Portal • Contact Ian Giddy at ian.giddy@nyu.edu