STS Criterion 26. Liability cash flow model

Description

Liability cash flow model

Content

The originator should, before the pricing of the securitisation, make available to potential investors a liability cash flow model which precisely represents the contractual relationship between the underlying exposures and the payments flowing between the originator, investors, other third parties and, where applicable, the SSPE, and should, after pricing, make that model available to investors on an ongoing basis and to potential investors upon request.

Rationale

To ensure consistency with the traditional framework, and to enhance transparency, the requirement to make available a liability cash flow model to investors is being maintained for synthetic STS securitisation.