July 2008
Beginner
384 pages
9h 52m
English
Content preview from Introduction to Securitization
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
INCLUSION OF STRUCTURAL PROTECTION TRIGGERS
Structural protection triggers are basically preventive provisions in a structure to take care of imminent weaknesses in the transaction. As emphasized earlier, there is no management that might deal with problems that may occur after the transaction is completed. Therefore, the mechanisms/procedures for dealing with problems that might arise over the life of the structure must be specified at the time of issuance. A structural protection trigger provides that if certain pre-specified weaknesses arise in the transaction, the structure of the transaction will be modified in a certain manner. Here are three examples of structural protection triggers:
• If the cumulative losses reach or exceed a level of x%, then the excess spread available to the originator will be not be distributed to the originator but be trapped to either create or increase the cash reserve.
• If the cumulative losses reach or exceed a level of x%, then to increase the credit enhancement to the senior bond classes the pay-down method will be altered from proportional to sequential.
• If the cumulative losses reach or exceed a level of x%, to increase the credit enhancement to the senior bond classes there will be a lockout on the coupon payments to the subordinated classes.
It should be noted that protective triggers in a structure are similar to the dividend suspension, acceleration, or similar covenants found in loan agreements.
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access
More than 5,000 organizations count on O’Reilly
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.