In today's highly regulated and competitive financial landscape, institutions are constantly seeking innovative strategies to enhance their financial health and operational efficiency. Securitization has emerged as a cornerstone of these efforts, offering a sophisticated mechanism to transform illiquid assets into tradable securities, thereby unlocking capital, managing risk, and bolstering balance sheets. This training course is meticulously designed for professionals aiming to leverage securitization not merely as a financing tool, but as a core strategic lever for achieving capital adequacy, improving liquidity ratios, and executing proactive balance sheet management.

This comprehensive 10-day program will provide an in-depth exploration of how securitization can be strategically employed to meet crucial corporate finance objectives. You will learn to identify eligible assets, structure transactions that provide regulatory capital relief, and analyze the impact of such deals on key financial metrics. From understanding the legal and accounting implications to mastering the art of investor relations, this course will equip you with the practical knowledge and advanced insights to confidently originate and execute securitization deals that drive significant value for your organization and position you as a leader in strategic finance.

Duration

10 days

Target Audience

• Corporate treasury and funding managers
• CFOs and senior finance executives
• Risk management and capital planning professionals
• Structured finance professionals
• Financial institution accountants
• Corporate finance and strategy professionals

Objectives

• Understand securitization as a strategic tool for financial management.
• Identify assets suitable for balance sheet optimization through securitization.
• Master the process of structuring deals for capital relief and liquidity.
• Analyze the accounting and regulatory impacts of securitization.
• Develop a framework for measuring the strategic benefits of securitization.
• Explore case studies of successful securitization for liquidity management.
• Navigate the legal and compliance framework of securitization.

Course Modules

Module 1: Securitization as a Strategic Tool

• A review of the core principles and evolution of securitization.
• The role of securitization in modern corporate finance.
• Understanding the drivers for using securitization for balance sheet management.
• Distinguishing between traditional financing and securitization.
• An overview of the key stakeholders in a securitization transaction.

Module 2: Capital and Liquidity Management Fundamentals

• A deep dive into regulatory capital frameworks (e.g., Basel III).
• The definition and importance of liquidity ratios and requirements.
• How a strong balance sheet enhances corporate value.
• The impact of an inefficient balance sheet on a firm's cost of capital.
• The role of securitization in meeting regulatory and market expectations.

Module 3: Asset Identification and Suitability

• Criteria for identifying assets suitable for securitization.
• The characteristics of a good collateral pool for liquidity purposes.
• An analysis of different asset classes (e.g., mortgages, auto loans, receivables).
• The importance of historical data and performance for asset selection.
• Understanding the role of a servicer in the ongoing management of the assets.

Module 4: Deal Structuring for Optimization

• The mechanics of different securitization structures (e.g., true sale vs. secured loan).
• How deal structure impacts regulatory capital treatment and accounting.
• Structuring deals to achieve off-balance sheet treatment.
• The role of credit enhancement in deal design.
• The use of special purpose vehicles (SPVs) and their legal implications.

Module 5: Regulatory Capital Relief

• An in-depth look at how securitization provides capital relief.
• The regulatory framework governing capital treatment of securitized assets.
• Calculating the capital benefits of a securitization transaction.
• The risks and rewards associated with retaining tranches.
• Navigating the approval process with regulatory bodies.

Module 6: Accounting and Reporting Impact

• A deep dive into the accounting standards for securitization (e.g., ASC 860).
• The criteria for achieving "true sale" accounting treatment.
• The impact of a deal on the originator's financial statements.
• Preparing disclosures and reporting for securitization transactions.
• The challenges of consolidating SPVs under new accounting rules.

Module 7: The Securitization Execution Process

• A step-by-step guide to originating and executing a securitization deal.
• The role of investment banks, lawyers, and rating agencies.
• Building a transaction timeline and managing key milestones.
• The process of marketing the deal to potential investors.
• The role of a data room in the due diligence process.

Module 8: Risk Management Applications

• The use of securitization to transfer and manage credit risk.
• Strategies for hedging interest rate and basis risk.
• Managing the risk of retained tranches.
• Understanding the role of performance triggers in a deal.
• The importance of ongoing monitoring and surveillance.

Module 9: Liquidity and Funding Strategies

• The role of securitization in creating a diverse funding mix.
• Using securitization to access new pools of capital.
• The benefits of a securitization program over a one-off deal.
• How securitization can improve a firm's borrowing costs.
• The impact of market conditions on a firm's ability to issue.

Module 10: Case Studies in Balance Sheet Optimization

• A detailed analysis of a bank using securitization for capital relief.
• A case study on a corporation using securitization to unlock working capital.
• Learning from a deal that was unsuccessful in achieving its objectives.
• An examination of the strategic decisions made in a successful deal.
• The lessons learned from the financial crisis and its impact on balance sheet management.

Module 11: Legal and Compliance Framework

• The key legal documents in a securitization transaction.
• An overview of relevant regulations (e.g., Dodd-Frank, EMIR).
• The importance of legal opinions and enforceability.
• Navigating cross-border securitization challenges.
• The role of legal counsel throughout the process.

Module 12: Investor Relations and Communication

• Understanding the needs and concerns of different investor types.
• Preparing effective investor presentations and roadshow materials.
• The importance of transparency and data disclosure.
• Managing communication during and after a deal closes.
• The long-term relationship between an originator and its investors.

Module 13: Advanced Balance Sheet Optimization

• An exploration of more complex securitization structures (e.g., synthetic deals).
• The use of securitization for legacy asset management.
• Strategies for using securitization for mergers and acquisitions.
• The role of technology and automation in the securitization process.
• The future trends in balance sheet optimization through securitization.

Module 14: Measuring the Impact

• Developing a framework for measuring the financial benefits of a deal.
• The calculation of return on equity (ROE) and other key metrics.
• Measuring the impact on credit rating and market perception.
• The use of internal metrics to track deal performance.
• A practical session on building an impact analysis model.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.