Difference between revisions of "Synthetic Securitisation"

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== Asset Structure ==
== Asset Structure ==
Predominant asset classes continue to be [[Large Corporates]] and [[SME Lending | SMEs]], followed by [[Trade Finance]]
* Predominant asset classes are<ref>EBA/DP/2019/01</ref> be [[Large Corporates]] and [[SME Lending | SMEs]], followed by [[Trade Finance]]
== See Also ==
* [[Synthetic versus Traditional Securitisation]]
== References ==
[[Category:Synthetic Securitisation]]
[[Category:Synthetic Securitisation]]

Latest revision as of 19:11, 11 October 2019


Synthetic Securitisation is a type of Securitisation structure that is constructed via a Credit Derivative transaction


Market Structure


Originators of synthetic securitisation are mostly credit institutions[1], in particular large/systemically important banks using Internal Ratings-Based Approach for calculating capital requirements for Credit Risk. The originator is typically the Protection Buyer.

For originators, having another Credit Risk Management tool and being able to release capital have traditionally been the central benefits of a balance sheet synthetic securitisation.


Investors in synthetic securitisation are non-bank private entities, which are usually highly specialised in credit investing and experienced in portfolio due diligence. The main motivation for investors to invest in synthetic securitisation is search for higher yield and enhanced diversification of their investments

Asset Structure

See Also


  1. EBA/DP/2019/01
  2. EBA/DP/2019/01

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