CASH vs. SYNTHETIC ASSET-BACKED SECURITIES

Abstract

During the past few years, in the recent post-crisis aftermath, financial and banking institutions around the world are exploring new alternatives to better secure their financing and refinancing demands altogether with the enhancement of their risk management capabilities. We will exhibit herewith a theoretical and applied comparison between the true-sale and synthetic ABS securitizations as financial markets-based funding and risks mitigation techniques, highlighting certain key structuring and implementation specifics, discovered during the research, on each of them.

Keywords

• true-sale ABS securitization
• synthetic ABS securitization
• credit derivatives
• cash asset-backed securities
• synthetic asset-backed securities