In today's dynamic financial environment, the ability to navigate complex structured finance products is a critical skill for leading professionals. Advanced securitization strategies move beyond foundational concepts to tackle the intricate art of structuring, precise valuation, and effective risk transfer. These strategies enable institutions to optimize balance sheets, raise capital efficiently, and manage exposure in an ever-changing regulatory landscape. Mastering these techniques provides a competitive advantage, allowing practitioners to innovate and drive value in the global financial markets.

This intensive, 10-day training course is designed for experienced professionals seeking to deepen their expertise and apply sophisticated techniques to real-world scenarios. We will delve into a variety of complex securitization structures, advanced pricing models, and the legal and regulatory nuances that shape transactions. By the end of this program, you will possess a comprehensive toolkit to structure, price, and execute complex deals with confidence, enhancing your capacity to lead and innovate in the highly specialized field of securitized products.

Duration: 10 days

Target Audience:

• Senior Investment Bankers
• Structured Finance Professionals
• Portfolio Managers and Quantitative Analysts
• Legal and Compliance Officers
• Chief Risk Officers (CROs)
• Financial Regulators and Policy Makers
• Hedge Fund and Private Equity Managers
• Credit Rating Analysts
• Treasury and Corporate Finance Executives

Objectives:

• Master the art of designing complex securitization structures for specific client needs.
• Apply advanced valuation and pricing models to different tranches and asset types.
• Analyze and manage sophisticated risk transfer mechanisms and their implications.
• Understand the role and impact of regulatory capital on securitization deals.
• Navigate the legal and accounting complexities of a variety of structures.
• Evaluate and mitigate basis risk, correlation risk, and other advanced risks.
• Deconstruct the mechanics of synthetic securitization and collateralized debt obligations.
• Assess the evolving landscape of securitization post-financial crisis.
• Develop strategic insights for the use of securitization in balance sheet management.

Course Modules:

Module 1: Foundations of Advanced Securitization

• Recap of core securitization principles
• Deconstructing deal structures and key stakeholders
• The motivations for advanced structuring
• The role of the Special Purpose Entity (SPE) in complex deals
• Understanding regulatory capital arbitrage

Module 2: Advanced Structuring Techniques

• Sequential pay, pro-rata, and turbo structures
• Waterfall mechanisms and cash flow distribution
• Structuring with different seniority levels (tranching)
• Synthetic versus cash securitization
• Tailoring structures for specific asset pools

Module 3: Pricing and Valuation Models

• Using binomial and lattice models for valuation
• The role of Monte Carlo simulation in pricing
• Modeling prepayment and default assumptions
• The impact of interest rate and credit spreads
• Pricing tranches with varying risk profiles

Module 4: Risk Transfer Mechanisms

• Credit default swaps (CDS) and their use in synthetic deals
• Total return swaps (TRS) and their applications
• The distinction between funded and unfunded credit protection
• The role of first-loss pieces and junior tranches
• Evaluating the effectiveness of risk transfer

Module 5: Collateralized Debt Obligations (CDOs)

• The mechanics of CDOs and CLOs
• The distinction between cash flow and market value CDOs
• Understanding the role of the collateral manager
• The importance of correlation in CDO pricing
• Deconstructing the CDO waterfall and tranche returns

Module 6: Synthetic Securitization

• The structure and purpose of a synthetic deal
• Using a credit default swap to transfer risk
• Benefits of synthetic deals for the originator
• The role of the SPV in a synthetic transaction
• Regulatory capital relief and its implications

Module 7: Accounting and Legal Complexities

• The true sale opinion and its legal basis
• The concept of a significant risk transfer
• Accounting treatment for off-balance-sheet financing
• Legal frameworks for cross-border securitization
• Navigating legal and documentation risks

Module 8: The Role of Credit Rating Agencies

• The rating methodology for securitized products
• Quantitative and qualitative factors in rating
• The importance of stress testing and scenario analysis
• The relationship between credit ratings and pricing
• Challenges and limitations of credit rating models

Module 9: Advanced Asset Classes

• Securitization of non-traditional assets
• Intellectual property, project finance, and aircraft leases
• Whole business securitization
• The unique challenges of these asset classes
• Case studies of complex securitizations

Module 10: Regulatory Capital and Securitization

• The Basel framework and its impact on banks
• Calculating risk-weighted assets (RWA)
• The use of securitization for RWA optimization
• The Simple, Transparent, and Comparable (STC) criteria
• Future regulatory changes and their implications

Module 11: Hedging and Risk Management

• Hedging interest rate and currency risk in deals
• Managing basis risk and correlation risk
• The use of derivatives within securitization structures
• Stress testing the portfolio under various scenarios
• The importance of liquidity management

Module 12: Servicing and Performance Monitoring

• Advanced servicer oversight and performance metrics
• The role of the trustee and cash manager
• Dealing with defaults and workouts
• The impact of servicer quality on deal performance
• Post-issuance reporting and transparency

Module 13: Issuance and Marketing

• The role of the investment bank in a private placement
• Marketing and selling complex securities to investors
• The importance of a well-documented offering memorandum
• Building a case for a new securitization program
• Global distribution channels and market access

Module 14: Case Study: A Complex Synthetic CDO

• A deep dive into a real-world synthetic CDO deal
• Analyzing the structure, risks, and returns
• Group exercise: designing a synthetic deal
• Presenting and defending the deal structure
• Learning from the successes and failures of the deal

Module 15: The Future of Securitization

• Emerging trends and new asset classes
• The rise of fintech and its impact on securitization
• Securitization in emerging markets
• The evolving regulatory environment
• Strategic applications of advanced securitization

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.