Structured finance market
CTLA provides assistance as you transact deals in the structured finance market with the following products: asset-backed securities, asset-backed commercial paper programmes, commercial mortgage-backed securities, equity-linked notes, limited recourse notes, mortgaged-backed securities, repackaged note programme and residential mortgage-backed securities.
Asset-backed securities (ABS)
These are bonds or notes backed by pools of financial assets, typically with predictable income flows, originated by banks and other credit providers. Examples of such assets include credit card receivables, trade receivables and auto loans.
Asset-backed commercial paper (ABCP) programmes
A CP whose principal and interest payments are designed to be derived from cash flows from an underlying pool of assets. As the assets are generally of a longer tenor than the CP issued to fund it, if the CP cannot be reissued to repay a maturing CP, a backstop liquidity facility is drawn upon to provide cash to repay investors.
Commercial mortgage-backed securities (CMBS)
These are securities that are backed by one or more pools of mortgage loans. CMBS are backed by one or more loans secured by commercial properties, which may include multifamily housing complexes, shopping centres, industrial parks, office buildings and hotels.
Equity-linked notes (ELNs)
ELN is an instrument whose return is determined by the equity markets (by the performance of a single equity security, a basket of equity securities or an equity index, in which case it is called equity-index-linked note).
Limited recourse notes
In the event of a default, the lender only has recourse to the asset(s) that are being put forward as a security for the loan, and not to any other assets the borrower or its parent company may have.
Mortgaged-backed securities (MBS)
MBS includes all securities whose security for repayment consists of a mortgage loan or a pool of mortgage loans secured on property. Investors receive payments of interest and principal that are derived from payments received on the underlying mortgage bonds.
Repackaged note programme (RPN)
Repackaging involves a change of profile of something that is already a debt security.
Residential mortgage-backed securities (RMBS)
These are securities that involve the issuance of debt that is secured by a pool of mortgage loans that have a lien over residential properties.