Securitization is a financial innovation that has profoundly shaped the modern global economy, enabling the transformation of illiquid assets into tradable securities and facilitating the flow of capital on an unprecedented scale. Understanding its evolution is not just an academic exercise; it is crucial for navigating the complex dynamics of today’s financial markets. This training course provides a definitive journey through the past and present of securitization, from its conceptual origins and groundbreaking triumphs to its role in market crises and the subsequent regulatory resets.

This comprehensive 10-day program is designed to equip finance professionals with a strategic understanding of securitization's multifaceted impact. The curriculum goes beyond basic deal mechanics to explore the macro-economic forces, regulatory shifts, and technological innovations that are currently reshaping the industry. We will critically analyze the lessons of the past while forecasting the future, including the rise of FinTech-driven securitization and the increasing importance of ESG factors. This course is an essential resource for those seeking a holistic, forward-looking perspective on one of finance’s most powerful and controversial tools.

Duration

10 days

Target Audience

• Investment bankers and structured product specialists
• Risk managers and credit analysts
• Regulators and compliance professionals
• Academics and researchers in finance
• Portfolio managers and fixed-income investors
• Legal professionals in financial law
• Financial journalists and economic policy analysts

Objectives

• Analyze the historical evolution of securitization from its origins to today.
• Evaluate the role of securitization in major financial crises.
• Assess the impact of global regulatory reforms on deal structures and markets.
• Understand the role of rating agencies and their methodologies over time.
• Forecast future trends including the impact of technology and ESG on the industry.
• Critically evaluate the benefits and systemic risks of securitization.
• Compare and contrast securitization practices across global markets.
• Analyze case studies from different eras to extract key lessons.
• Synthesize a strategic outlook on the future of structured finance.

Course Modules

Module 1: The Origins and Early History of Securitization

• Defining the core concept of securitization.
• The rise of mortgage finance in the United States.
• The creation of Ginnie Mae, Fannie Mae, and Freddie Mac.
• Early asset-backed securities (ABS) and their purpose.
• The expansion of securitization beyond mortgages.

Module 2: The Heyday and Global Expansion

• The growth of the CDO and CLO markets.
• The proliferation of complex securitized products.
• How securitization fueled the housing boom.
• The role of low-interest rates and global capital flows.
• The global adoption of securitization practices.

Module 3: Anatomy of a Securitization Deal

• The key parties involved in a transaction.
• The role of the originator and the servicer.
• The structure of the Special Purpose Vehicle (SPV).
• The concept of a true sale and its importance.
• A deep dive into the waterfall and cash flow distribution.

Module 4: The 2008 Global Financial Crisis

• The role of subprime mortgages.
• The emergence of synthetic CDOs and their risks.
• The failure of risk management and credit ratings.
• The contagion effect and systemic risk.
• A detailed timeline of the crisis and key events.

Module 5: The Regulatory Response and Reform

• A deep analysis of the Dodd-Frank Act.
• The Volcker Rule and its impact.
• New regulations for credit rating agencies.
• Basel III capital requirements for banks.
• Global regulatory cooperation and reform efforts.

Module 6: Securitization Today: The Post-Crisis Era

• Changes in deal structures and investor behavior.
• The return of the CLO market.
• New asset classes being securitized.
• The increased focus on transparency and disclosure.
• The role of securitization in bank capital management.

Module 7: The Role of Credit Rating Agencies

• Historical methodologies and their evolution.
• The conflict of interest debate.
• The new regulatory oversight of rating agencies.
• The importance of model assumptions and stress testing.
• How investors now approach ratings.

Module 8: Securitization and the Global Economy

• The role of securitization in economic development.
• How it facilitates credit creation.
• Its impact on monetary policy and central banks.
• Securitization as a tool for financial stability or instability.
• The global interconnectedness it has created.

Module 9: FinTech and the Future of Securitization

• The impact of blockchain and distributed ledger technology.
• The rise of marketplace lenders and their securitization.
• The use of AI and machine learning in risk modeling.
• The tokenization of assets and its potential.
• Digital platforms for deal issuance and management.

Module 10: ESG and Sustainable Securitization

• The rise of green and social bonds.
• How ESG factors are being incorporated into deals.
• The challenge of standardizing ESG metrics.
• Case studies of sustainable securitization.
• The future of securitization as a tool for sustainability.

Module 11: International Perspectives on Securitization

• A comparison of US, European, and Asian markets.
• Differences in legal frameworks and investor protections.
• The role of government-sponsored entities (GSEs) in various regions.
• The growth of securitization in emerging markets.
• Global trends and convergence of standards.

Module 12: Credit Risk and Modeling in the Modern Era

• Advanced techniques for modeling default and recovery rates.
• The use of big data in credit analysis.
• Stress testing and scenario analysis for portfolios.
• The impact of macro-economic variables on risk.
• A critical evaluation of current modeling practices.

Module 13: Legal and Ethical Issues

• Ongoing litigation from the financial crisis.
• The ethics of risk distribution.
• The importance of disclosure and investor protection.
• The role of legal opinions and deal covenants.
• Emerging legal challenges in FinTech securitization.

Module 14: Case Studies: Triumphs and Tribulations

• An in-depth analysis of a successful securitization deal.
• A breakdown of a failed deal and the lessons learned.
• Examining a securitization deal from the post-crisis era.
• Understanding the impact of a specific market event.
• A case study on a recent FinTech securitization.

Module 15: The Future of Securitization

• A final discussion on the key drivers of change.
• The role of government and regulation moving forward.
• Predicting new asset classes for securitization.
• The long-term impact of technology and ESG.

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.