Securitisation of an asset

This outline describes the securitisation of an asset. More detailed examples are available under the heading "Examples of Securitisation".

Titrisation

The Transferor receives a price from the securitisation vehicle for the asset transferred that takes the inherent risks into consideration.

The Securitisation Vehicle receives the securitised asset from the Transferor which is financed by the issue of registered or bearer transferable securities.

All income received by the Securitisation Vehicle is transferred to the holder of the securities without any tax friction.

Debt, a credit portfolio, transferable securities, tangible and intangible assets, movable and immovable property may all be securitised.

Securitisation can also be synthetic; that is to say, without transfer of ownership of the asset to be securitised.