In the wake of the credit crunch, structured finance is linked to bailed-out investment banks and overpaid executives rather than to the innovative financial solutions it continues to provide. The initial response from the financial markets has been a move back to basics, to plain vanilla transactions. Furthermore, securitization, derivatives and other structured products are facing intense regulatory and political scrutiny. These pressures notwithstanding, the potential of structured finance will play an important part in facilitating recovery. This book explains why. This book serves three purposes. First, it complements and updates the analysis of structured finance in the popular and highly acclaimed first volume in this series ("Securitization Law and Practice in the Face of the Credit Crunch"), with plenty of focus on derivatives. It includes a discussion of the collateralization of derivatives exposure as well as an analysis of novel derivative products such as weather and property derivatives. Second, it defines the key milestones of the credit crunch, focusing on the potential impact of the expected flow of litigation by aggrieved investors against the perceived deep pockets of arrangers and rating agencies around the world. Third, it illustrates ways in which the untapped potential of structured finance may well facilitate recovery. To this end, the book explores opportunities for securitization by sovereign states, by companies in emerging markets through DPRs, and by financial institutions plagued with non-performing loans and negative equity mortgages in the wake of property market conditions. Like its predecessor, this second volume in the series will again appeal to a wide variety of practitioners, whether lawyers in private practice or in-house or those active in the financial markets or in a supervisory or regulatory environment. Example structures and actual transactions make the topic very easily accessible and practice oriented. This book is an indispensable tool for any professionals connected with financial law in these turbulent times.

Securitization-once a fairly straightforward means of offering collateral for investment-has mushroomed into a massively complex area of financial practice. The central role occupied by such risk-distributing products as collateral debt obligations (CDOs), credit default swaps (CDSs), collateral loan obligations (CLOs), and credit derivatives has given rise to one of the most crucial inquiries of our era: Is the financial collapse that threatens the world financial system due merely to rogue traders? Or is there something in the derivative idea itself that spells inevitable disaster? Most important, can we isolate the truly productive aspects of securitisation and learn to recognise pitfalls in advance? As always in such ideational minefields, it is the legal practitioners who are expected to provide guidance to distressed investors and asset dealers. Hence this vital new book.Written from a distinctly practical point of view by Jan Job de Vries Robbe with contributions from Paul Ali and Tim Coyne-all three leading authorities with extensive experience as counsel both in-house and in private practice, in addition to sterling academic credentials-the book sheds clear light on every aspect of today's securitization techniques, including welcome guidance on the following:A* understanding the nature of the risk in CDO squared transactions;A* keeping track of exposure to the CDO market; andA* evaluating such emerging asset classes as commodity risk, microfinance, and project finance risk. In the course of the analysis the book proceeds from the relevant framework and guiding legal principles, through key risks and building blocks in securitisation transactions, to the various product classes and sub-classes and their differences and common denominators. Non-credit risk and niche products (such as fund and insurance securitization) are also covered. The final chapters are devoted to the applicable rules as laid down in Basel II and International Financial Reporting Standards.Securitization Law and Practice introduces order, clarity, and renewed confidence into a troubled area of the law. Its combination of sound information, insightful knowledge, and practical wisdom will make it a highly valuable resource for lawyers and students in an indispensable field of international practice.

The contributions in this volume elucidate both 'synthetic securitization' (which involves the investors in exposure-based securities to particular risks in exchange for a fee) and conventional securitization (issuance of securities for the primary purpose of raising funds for the originator or owner of the assets being securitized). The various contributions illustrate how the structures employed in securitizations are readily capable of being applied to a wide range of income-generating assets, including such innovative asset classes as the following:
- commercial mortgages
- student rents
- intellectual property rights
- carbon emission allowances
- life insurance policies
- project and infrastructure loans
- microfinance loans
- sovereign aid grants
- non-performing loans
- loans to finance corporate takeovers
- tax receivables and other public sector assets
In addition, this volume covers the emergence of new markets for securitization in Asia, Latin America, Islamic countries, and South Africa, as well as major developments in the accounting treatment of securitizations and evolving judicial attitudes to the underlying sale and credit derivative components of securitizations.

Despite fears that regulators around the world would act to curtail securitisation severely in the aftermath of the collapse of Enron, WorldCom, and Parmalat, the securitisation industry has witnessed what can only be described as relentless innovation. Securisation remains one of the most important means for financial institutions to diversify their funding, transfer credit risk and manage solvency requirements. This volume, the second in a series focusing on the latest innovations in the global securitisation industry, provides advisers with detailed guidance on key structural and legal issues of innovative securitisations, as well as describing the most recent developments in the accounting and risk-capital treatment of securitisation transactions. The contributors represent a wide range of expert participants in the design, execution, and regulation of securitisation transactions. Among the critical features of contemporary securitisation covered are the following: project finance CLOs; securitisation of equity risk; securitisation of commodity risk through commodity trigger swaps; the convergence of structured credit and securitisation markets; innovation in RMBS: negative equity transactions; innovation in CMBS: A/B structure; new markets in Europe, Japan, and Islamic countries; catastrophe risk securitisation; effect of recent US bankruptcy legislation on synthetics; microfinance loan securitisation in emerging markets; public sector securitisation; securitisable intellectual property; application of accounting standards in a rapidly changing environment, and updated analysis of Basel II. The practical perspective of the contributions, combined with the extensive use of case studies of key transactions, should make this volume an invaluable resource for lawyers as well as legal and business academics interested in the very latest developments in the global securitisation markets.