CASH vs. SYNTHETIC ASSET-BACKED COMMERCIAL PAPERS

Abstract

During the past few years, in the recent post-crisis aftermath, financial, banking as well as non-financial institutions around the world are exploring new alternatives to better secure their financing and refinancing demands along with the improvement of their risk management capabilities. We will exhibit herewith a theoretical and applied comparison between the true-sale and synthetic ABCP 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 ABCP securitization
• synthetic ABCP securitization
• credit derivatives
• cash asset-backed commercial papers
• synthetic asset-backed commercial papers