The Capital Markets Process of Securitisation

Table of Contents

Executive summary

        2

Letter of transmittal

        3

Development and growth of securitisation         5

Securitisation Structure

        7

Securitisation and the Capital Market

        9

Securitisation and the Capital Market

        11

Future Direction and Growth of Securitisation in the Capital Markets

        13

Appendix

        15

Bibliography

        16

References         18

Executive Summary

This report outlines the cosmos and development of securitisation, looking at its origins in the American markets and its introduction and subsequent growth in the Australian market. The high levels of growth lie in the deregulating of the banking industry which has lead to the emergence of more sophisticated financial instruments, including the increased usage of securitisation as a process of change off non-marketable assets to generate funds and manage the social organisation of the sleep sheet. The growth in securitisation has impacted on both the international large(p) markets and the housing markets. Its growth created borrowing opportunities for companies that would have differently found it difficult access large amounts of funding. It has also helped to quail the cost of funds for financial institutions, and assisted in evolution a more competitive housing loan market, with non ADIs, and progressively regional banks are using securitisation as a subject matter of increasing their funding capacity.



Yet the securitisation market is ever evolving, with the introduction of Basel II in 2007 impacting of the future level of securitisation. Furthermore as financial instruments become more sophisticated it is expected that the types of assets cosmos securitised will also evolve.

Letter of Transmittal

TO: Ms Julie Marget

FROM: Lucy Dron

DATE: 9 September 2004

SUBJECT: The capital markets process of securitisation

Here is the business report requested at the arising of semester 2, detailing the development of capital markets in Australia and overseas.

The report explores the origins of securitisation its structure and its impact on...

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