An increasingly wide range of financial instruments is available in Japan to assist organizations in managing today's global economic challenges. One of the most popular and powerful tools is asset-backed securitization (ABS).
Primarily used to raise funds in the capital markets, ABS is the issuance of securities based on the credit quality of a segregated pool of an organization's financial assets. ABS enables financial institutions and corporations to:
- Diversify fundraising sources
- Improve their balance sheets by decreasing liabilities
- Decrease fundraising costs
The fundamental element of ABS is cash flow. Any asset that has cash flow can be securitized. ABS does not depend on the originator's credit worthiness, but on the quality of the relevant cash flows.
Shinsei Bank has strong ABS execution capabilities in a wide range of asset types including:
- Lease receivables
- Consumer loan receivables
- Installment receivables
- Trade receivables
- Bill receivables
- Medical service receivables
- Whole business securitization
Transaction structures include asset-backed securities, asset-backed loans and master trust funds.
In addition to structuring and arrangement, the Shinsei Bank Group is able to provide "full service" securitization to customers by leveraging trust services, distribution, back-up servicing, master servicing and underwriting of affiliates.
CLO Master Trust Funding Program
In 2001, the ABS team launched a collateralized loan obligation (CLO) master trust-funding program – the first for a Japanese bank. This innovative program successfully diversified and stabilized Shinsei Bank's own funding sources through the global capital markets and led to winning numerous industry awards. Please click here to view a list of awards won.
This highly successful program offers opportunities for institutional customers to invest in AAA-/Aaa-rated securities.
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