Possibility of conducting on balance dept securitisation in Republic of Serbia by issuing covered bonds

Abstract

Dept securitisation is a procedure of converting non liquid bank assets into liquid by securities placement at capital market. Subject of this paper is on balance securitisation and question is it possible to conduct emission of bonds covered by pledge on bank claims, since it is possible to issue corporate bonds. Emission of this kind of bonds would enable issuer to collect cheep capital, while he would emit high quality dept bonds with low interest rate. The paper indicates the problems which follow this kind of emission and gives answer to the question which is the preconditions for it to be enabled in our legal system.

Keywords

• Dept securitisation
• on-balance securitisation
• covered bonds
• capital market
• right of pledge