View source for STS Criterion 4. Homogeneity enforceable obligations full recourse to obligors period payment streams

== Description ==
Homogeneity, enforceable obligations, full recourse to obligor, periodic payment stream <ref>EBA STS Framework for Synthetic Securitisation, EBA/DP/2019/01</ref>

== Content ==
The underlying exposures should meet the following criteria:
* The synthetic securitisation should be backed by a pool of underlying exposures that are homogeneous in terms of asset type, subject to conditions clearly defined and specified in the transaction documentation.
* The underlying exposures should contain obligations of the debtors and, where applicable guarantors, to pay the sums of money specified in the terms that are contractually binding and enforceable in accordance with such terms, with full recourse to debtors and, where applicable, guarantors.
* The underlying exposures should have defined periodic payment streams, the instalments of which may differ in their amounts, relating to rental, principal, or interest payments, or to any other right to receive income from assets supporting such payments.
* The underlying exposures may also generate proceeds from the sale of any financed or leased assets.

== Rationale ==
See overarching rationale for consistency with traditional qualifying framework.

As regards the homogeneity, additional homogeneity criteria should be developed to specify the homogeneity in terms of asset type, similarly as has been done for traditional securitisation in the Regulatory Technical Standards on homogeneity which take into account specificities of synthetic securitisation.

== Issues and Challenges ==


== References ==
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[[Category:STS Simplicity]]