Securitisation Services

Definition of Securitisation

In simple terms securitisation is a sophisticated structured finance transaction consisting in the

  • pooling, by a single Originator, of virtually any type of asset
  • in a special purpose securitisation entity (the securitisation vehicle) and
  • selling their related cash flows to investors as securities.

Typically, the securities issued against cash consideration are bonds, which may be structured in any appropriate way, e.g. be interest bearing or zero-coupon, fixed or floating rate interest or performance-linked, convertible into shares of the securitisation vehicle or exchangeable against the underlying asset. However, the law also allows the securitisation vehicle to issue shares.

The securities are issued in order to finance the acquisition of the asset. The asset is thereby truly sold by its original owner, the Originator, to the securitisation vehicle.

Securitisation may also be used for the assumption of risk from the Originator (synthetic securitisation) or be tied to a secured loan to the Originator (loan securitisation). Further, our licensed Maltese group trustee may also serve as securities trustee, where appropriate.

Thus, securitisation is the conversion of basically any type of asset or assumption of risk or debt into securities, which can be placed and traded in capital markets.

For more information on our services, please do not hesitate to contact us.