Asset Securitization Fundamentals
Expert-defined terms from the Certificate in Asset Backed Securities (United Kingdom) course at LearnUNI. Free to read, free to share, paired with a professional course.
Absolute Priority Rule refers to the order in which creditors are paid in the ev… #
This concept is essential in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Bankruptcy, Credit Rating, and Seniority.
Accreting Swap is a type of derivative instrument used to hedge against i… #
This concept is relevant in Asset Securitization Fundamentals as it can be used to manage the interest rate risk of the underlying assets. Related terms include Derivative, Hedge, and Interest Rate Risk.
Amortization refers to the process of gradually reducing the principal am… #
This concept is crucial in Asset Securitization Fundamentals as it affects the cash flows of the securities issued. Related terms include Amortization Schedule, Loan, and Bond.
Asset #
Backed Commercial Paper (ABCP) is a type of short-term debt instrument that is collateralized by a pool of assets, such as loans or receivables. This concept is essential in Asset Securitization Fundamentals as it provides an alternative source of funding for companies. Related terms include Commercial Paper, Asset-Backed Security, and Collateral.
Asset #
Backed Security (ABS) is a type of financial instrument that is collateralized by a pool of assets, such as loans or receivables. This concept is fundamental in Asset Securitization Fundamentals as it allows companies to raise capital by packaging and selling their assets. Related terms include Asset Securitization, Collateral, and Securitization.
Asset Securitization refers to the process of packaging and selling assets, such… #
This concept is central to Asset Securitization Fundamentals as it provides an alternative source of funding for companies. Related terms include Securitization, Asset-Backed Security, and Collateral.
Assignment is the process of transferring the ownership of a loan or othe… #
This concept is relevant in Asset Securitization Fundamentals as it affects the legal rights and obligations of the parties involved. Related terms include Transfer, Novation, and Ownership.
Bankruptcy refers to the state of being unable to pay debts and liabiliti… #
This concept is essential in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Insolvency, Liquidation, and Credit Rating.
Basel Accords refer to a set of international regulatory guidelines that… #
This concept is relevant in Asset Securitization Fundamentals as it affects the capital requirements for banks and financial institutions that engage in asset securitization. Related terms include Capital Requirements, Banking Regulation, and Risk Management.
Bond refers to a type of long #
term debt instrument that represents a loan made by an investor to a borrower. This concept is fundamental in Asset Securitization Fundamentals as it provides a source of funding for companies. Related terms include Debt Instrument, Loan, and Investor.
Call Option is a type of derivative instrument that gives the holder the… #
This concept is relevant in Asset Securitization Fundamentals as it can be used to manage the interest rate risk of the underlying assets. Related terms include Derivative, Hedge, and Interest Rate Risk.
Cash Flow refers to the inflows and outflows of cash and cash equivalents… #
This concept is essential in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Cash Flow Statement, Income Statement, and Balance Sheet.
Collateral refers to the assets or securities pledged as security for a l… #
This concept is central to Asset Securitization Fundamentals as it provides a source of funding for companies. Related terms include Asset-Backed Security, Securitization, and Loan.
Collateralized Debt Obligation (CDO) is a type of financial instrument that is <… #
This concept is relevant in Asset Securitization Fundamentals as it provides an alternative source of funding for companies. Related terms include Asset-Backed Security, Collateral, and Securitization.
Collateralized Loan Obligation (CLO) is a type of financial instrument that is <… #
This concept is essential in Asset Securitization Fundamentals as it provides an alternative source of funding for companies. Related terms include Asset-Backed Security, Collateral, and Securitization.
Credit Derivative is a type of derivative instrument that allows investor… #
This concept is relevant in Asset Securitization Fundamentals as it can be used to manage the credit risk of the underlying assets. Related terms include Derivative, Hedge, and Credit Risk.
Credit Enhancement refers to the process of improving the credit quality… #
This concept is essential in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Credit Derivative, Hedge, and Credit Support.
Credit Rating refers to the evaluation of the credit worthiness of a borr… #
This concept is central to Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Credit Risk, Credit Score, and Credit Worthiness.
Credit Risk refers to the risk that a borrower or issuer of debt will default… #
This concept is fundamental in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Credit Rating, Credit Score, and Default Risk.
Debt Instrument refers to a type of financial instrument that represents a lo… #
This concept is essential in Asset Securitization Fundamentals as it provides a source of funding for companies. Related terms include Bond, Loan, and Note.
Default Risk refers to the risk that a borrower or issuer of debt will defaul… #
This concept is central to Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Credit Risk, Credit Rating, and Default.
Derivative refers to a type of financial instrument that derives its value from… #
This concept is relevant in Asset Securitization Fundamentals as it can be used to manage the interest rate risk or credit risk of the underlying assets. Related terms include Hedge, Option, and Swap.
Due Diligence refers to the process of conducting a thorough investigation</b… #
This concept is essential in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Investigation, Analysis, and Risk Assessment.
Early Amortization refers to the process of paying off a loan or debt instrument… #
This concept is relevant in Asset Securitization Fundamentals as it affects the cash flows of the securities issued. Related terms include Amortization, Loan, and Debt Instrument.
Enhanced Equipment Trust Certificate (EETC) is a type of financial instrument th… #
This concept is essential in Asset Securitization Fundamentals as it provides an alternative source of funding for companies. Related terms include Asset-Backed Security, Collateral, and Securitization.
Equipment Lease refers to a type of agreement where a company leases equi… #
This concept is relevant in Asset Securitization Fundamentals as it provides an alternative source of funding for companies. Related terms include Lease, Equipment, and Financing.
Euro Medium #
Term Note (EMTN) is a type of debt instrument that is issued in the European markets, typically with a maturity of less than five years. This concept is essential in Asset Securitization Fundamentals as it provides a source of funding for companies. Related terms include Debt Instrument, Bond, and Note.
Fixed Rate Bond is a type of bond that pays a fixed rate of interest over… #
This concept is fundamental in Asset Securitization Fundamentals as it provides a source of funding for companies. Related terms include Bond, Interest Rate, and Maturity.
Floating Rate Bond is a type of bond that pays a floating rate of interes… #
This concept is relevant in Asset Securitization Fundamentals as it provides a source of funding for companies. Related terms include Bond, Interest Rate, and Benchmark.
Hedge refers to the use of derivative instruments or other financial inst… #
This concept is essential in Asset Securitization Fundamentals as it can be used to manage the interest rate risk or credit risk of the underlying assets. Related terms include Derivative, Option, and Swap.
Interest Rate Risk refers to the risk that changes in interest rates will… #
This concept is central to Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Interest Rate, Bond, and Loan.
International Securities Identification Number (ISIN) is a unique identifier<… #
This concept is essential in Asset Securitization Fundamentals as it affects the trading and settlement of the securities issued. Related terms include Securities Identification, Trading, and Settlement.
Investment Grade refers to a credit rating that indicates a low risk of d… #
This concept is fundamental in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Credit Rating, Credit Risk, and Default Risk.
Junior Debt refers to a type of debt that is subordinate to senior debt,… #
This concept is relevant in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Senior Debt, Subordination, and Default Risk.
Letter of Credit is a type of guarantee issued by a bank or other financi… #
This concept is essential in Asset Securitization Fundamentals as it provides a form of credit support for the securities issued. Related terms include Guarantee, Credit Support, and Default Risk.
Leverage refers to the use of debt or other forms of financing to increas… #
This concept is relevant in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Debt, Financing, and Return on Investment.
Lien refers to a type of security interest that is granted over a propert… #
This concept is essential in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Security Interest, Loan, and Debt Obligation.
Liquidation refers to the process of selling or disposing of assets in order to… #
This concept is central to Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Bankruptcy, Insolvency, and Debt Obligation.
Loan refers to a type of debt instrument that represents a borrowing of f… #
This concept is fundamental in Asset Securitization Fundamentals as it provides a source of funding for companies. Related terms include Debt Instrument, Bond, and Note.
Maturity refers to the date on which a debt instrument, such as a bond or loan,… #
This concept is essential in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Debt Instrument, Bond, and Loan.
Mezzanine Debt refers to a type of debt that is subordinate to senior deb… #
This concept is relevant in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Senior Debt, Subordination, and Default Risk.
Mortgage #
Backed Security (MBS) is a type of financial instrument that is collateralized by a pool of mortgages, typically with a fixed interest rate and maturity date. This concept is essential in Asset Securitization Fundamentals as it provides an alternative source of funding for companies. Related terms include Asset-Backed Security, Collateral, and Securitization.
Note refers to a type of debt instrument that represents a loan or other… #
This concept is fundamental in Asset Securitization Fundamentals as it provides a source of funding for companies. Related terms include Bond, Loan, and Debt Instrument.
Novation refers to the process of replacing an existing contract or agree… #
This concept is relevant in Asset Securitization Fundamentals as it affects the legal rights and obligations of the parties involved. Related terms include Contract, Agreement, and Assignment.
Option refers to a type of derivative instrument that gives the holder th… #
This concept is essential in Asset Securitization Fundamentals as it can be used to manage the interest rate risk or credit risk of the underlying assets. Related terms include Derivative, Hedge, and Swap.
Over #
Collateralization refers to the process of providing excess collateral to secure a loan or other debt obligation, typically to reduce the risk of default or bankruptcy. This concept is relevant in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Collateral, Loan, and Debt Obligation.
Prepayment Risk refers to the risk that a borrower will prepay a loan or… #
This concept is central to Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Loan, Debt Instrument, and Maturity.
Principal refers to the amount of a loan or debt instrument that is outst… #
This concept is fundamental in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Loan, Debt Instrument, and Interest.
Private Placement refers to the sale of securities to a limited number of… #
This concept is relevant in Asset Securitization Fundamentals as it provides an alternative source of funding for companies. Related terms include Securities, Investors, and Registration.
Rating Agency refers to a company that evaluates the creditworthiness of… #
This concept is essential in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Credit Rating, Credit Score, and Creditworthiness.
Revolving Loan refers to a type of loan that allows the borrower to borrow</b… #
This concept is relevant in Asset Securitization Fundamentals as it provides a source of funding for companies. Related terms include Loan, Debt Instrument, and Credit Facility.
Securitization refers to the process of packaging and selling assets, such as lo… #
This concept is central to Asset Securitization Fundamentals as it provides an alternative source of funding for companies. Related terms include Asset-Backed Security, Collateral, and Securitization.
Senior Debt refers to a type of debt that has a higher priority in the ev… #
This concept is fundamental in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Junior Debt, Subordination, and Default Risk.
Servicer refers to a company that administers and collects payments on a… #
This concept is essential in Asset Securitization Fundamentals as it affects the cash flows of the securities issued. Related terms include Loan, Debt Instrument, and Administration.
Special Purpose Entity (SPE) refers to a company that is established specificall… #
This concept is central to Asset Securitization Fundamentals as it provides an alternative source of funding for companies. Related terms include Asset-Backed Security, Collateral, and Securitization.
Subordination refers to the process of ranking debts or other obligations in ord… #
This concept is relevant in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Senior Debt, Junior Debt, and Default Risk.
Swap refers to a type of derivative instrument that involves the exchange… #
This concept is essential in Asset Securitization Fundamentals as it can be used to manage the interest rate risk or credit risk of the underlying assets. Related terms include Derivative, Hedge, and Option.
Term Loan refers to a type of loan that has a fixed interest rate and mat… #
This concept is fundamental in Asset Securitization Fundamentals as it provides a source of funding for companies. Related terms include Loan, Debt Instrument, and Credit Facility.
Tranche refers to a portion of a larger debt instrument or securitization… #
This concept is relevant in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Debt Instrument, Securitization, and Risk Profile.
Underwriting refers to the process of evaluating and assuming the risk of… #
This concept is essential in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Loan, Debt Instrument, and Risk Assessment.
Variable Rate Bond is a type of bond that pays a variable rate of interes… #
This concept is relevant in Asset Securitization Fundamentals as it provides a source of funding for companies. Related terms include Bond, Interest Rate, and Benchmark.
Wrap refers to a type of guarantee or insurance policy that provides c… #
This concept is essential in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Guarantee, Credit Enhancement, and Credit Rating.
Yield refers to the return on an investment, typically expressed as a per… #
This concept is fundamental in Asset Securitization Fundamentals as it affects the credit rating of the securities issued. Related terms include Return on Investment, Interest Rate, and Principal.
Zero #
Coupon Bond is a type of bond that does not pay interest over its life, instead returning the principal amount at maturity. This concept is relevant in Asset Securitization Fundamentals as it provides a source of funding for companies. Related terms include Bond, Interest Rate, and Maturity.