Chapter 10: Securitization and Structured Products

In this section

• Introduction to Securitization and Parties Involved
  Introduction to Securitization and Parties Involved (CFA Level 1): Key Concepts in Securitization, Typical Securitization Flow, and Parties Involved in a Securitization. Key definitions, formulas, and exam tips.
• Mortgage-Backed Securities (Residential and Commercial)
  Mortgage-Backed Securities (Residential and Commercial) (CFA Level 1): Core Concepts of MBS, Securitization Process, and Key Differences Between RMBS and CMBS. Key definitions, formulas, and exam tips.
• Asset-Backed Securities (Auto Loans, Credit Cards, etc.)
  Asset-Backed Securities (Auto Loans, Credit Cards, etc.) (CFA Level 1): Key ABS Collateral Types, Auto Loan ABS, and Credit Card ABS. Key definitions, formulas, and exam tips.
• Collateralized Mortgage Obligations (CMOs) and Other Structured Vehicles
  Collateralized Mortgage Obligations (CMOs) and Other Structured Vehicles (CFA Level 1): Building Blocks of MBS and the Birth, Key CMO Structures and Tranches, and Sequential-Pay Tranches. Key definitions, formulas, and exam tips.
• Covered Bonds and European Pfandbrief
  Covered Bonds and European Pfandbrief (CFA Level 1): Key Characteristics of Covered Bonds, European Pfandbrief: A Blueprint for Stability, and Covered Bonds vs. ABS. Key definitions, formulas, and exam tips.
• Synthetic Securitizations and Credit Derivative Structures
  Synthetic Securitizations and Credit Derivative Structures (CFA Level 1): Key Concepts, Significance and Rationale, and How It Works: The Flow of Risk and. Key definitions, formulas, and exam tips.
• Evaluating Risks in Structured Finance (Operational, Counterparty)
  Evaluating Risks in Structured Finance (Operational, Counterparty) (CFA Level 1): Linking the Dots in Structured Finance, Operational Risk: The Nuts and Bolts, and Key Sources of Operational Risk. Key definitions, formulas, and exam tips.
• Impact of Regulatory Changes on Structured Product Innovation
  Impact of Regulatory Changes on Structured Product Innovation (CFA Level 1): Post-Crisis Regulatory Shift, Risk Retention: “Skin in the Game”, and Capital Requirements and Basel Accords. Key definitions, formulas, and exam tips.
• Marketplace Lending Securitizations (Peer-to-Peer)
  Marketplace Lending Securitizations (Peer-to-Peer) (CFA Level 1): Defining the Marketplace Lending Model, Quick Look at the Securitization Structure, and Securitization Rationale and Benefits. Key definitions, formulas, and exam tips.
• Re-Remics and Repackaging of Existing Structured Securities
  Re-Remics and Repackaging of Existing Structured Securities (CFA Level 1): Why Re-Remics?, Re-Remic Mechanics and Waterfall Restructuring, and Credit Subordination. Key definitions, formulas, and exam tips.
• Insurance-Linked Securities and Catastrophe Bonds
  Insurance-Linked Securities and Catastrophe Bonds (CFA Level 1): Key Mechanics of Insurance-Linked Securities, Why Transfer Insurance Risk to Capital Markets?, and Catastrophe Bonds (Cat Bonds). Key definitions, formulas, and exam tips.
• LIBOR Transition and Fallback Provisions for Structured Products
  LIBOR Transition and Fallback Provisions for Structured Products (CFA Level 1): Understanding the Phasing Out of LIBOR, Choosing New Benchmark Rates, and Key Elements of Fallback Provisions. Key definitions, formulas, and exam tips.
• ESG Integration in Structured Credit and Green Securitizations
  ESG Integration in Structured Credit and Green Securitizations (CFA Level 1): Need for ESG Integration, Green Securitizations, and Light Green vs. Dark Green. Key definitions, formulas, and exam tips.
• Evolving Securitization Structures with Blockchain Applications
  Evolving Securitization Structures with Blockchain Applications (CFA Level 1): Foundational Concepts of Blockchain in Securitization and Asset Tokenization in Securitized Products. Key definitions, formulas, and exam tips.
• Collateralized Loan Obligations (CLOs) and Structuring Mechanics
  Collateralized Loan Obligations (CLOs) and Structuring Mechanics (CFA Level 1): CLO Fundamentals, CLO Structure, and Key CLO Participants. Key definitions, formulas, and exam tips.
• Warehouse Lines and the Securitization Pipeline
  Warehouse Lines and the Securitization Pipeline (CFA Level 1): Understanding the Securitization Pipeline, Key Concepts of Warehouse Lines, and Pipeline Risk and Why It Matters. Key definitions, formulas, and exam tips.