![]() The sum of the coupon rate paid on the investor certificates and the servicing fee. See definition for Controlled Amortization Period. ![]() The loss of accounts either involuntarily through charge-off or death or voluntarily, at the option of the cardholder. An attached call held by the transferor could result in the transferor retaining effective control, and its existence could preclude sales treatment on the transaction. See definition for Controlled Accumulation Period.Īll costs, such as transaction cost, equity, and debt.Ī call option held by the transferor (bank) of a financial asset that becomes part of and is traded with the underlying instrument. The amount of benefits of servicing that would fairly compensate a substitute servicer should one be required, which includes the profit that would be demanded in the marketplace.Īccounts that are added to (technically, designated for) the securitization vehicle in order to maintain the investor's interest in the underlying assets at the prescribed level, establish new series within a master trust, or change the existing credit quality on the aggregate pool of receivables. ![]() including office furniture, fixtures, and equipment. Portion (if any) exceeds coverage limits at that bank.Īre My Deposit Accounts Insured by the FDIC?įDIC-insured institutions to conduct business and exchange Specific group of deposit accounts — what's insured and what These are called mortgage-backed securities (MBS).Determine how the insurance rules and limits apply to a One specific sub-category of asset-backed securities is backed by real estate. This grouping helps investors select the asset-backed securities that best fits their investment profile. Securities backed by royalty payments from contracts.Securities backed by accounts receivable (money a business is owed by its customers).Securities backed by short-term loans with low interest rates.Securities backed by long-term loans with high interest rates.Securities are categorized according to the type of assets used to back them. Investors not only benefit from the income that flows from the assets that “back” the securities, but also from the liquidity of the securities themselves-the ability to sell them to another buyer at any time. They also grow their loan books by lending the capital back out to new borrowers. Better yet, they do that by freeing up cash from assets sitting on their balance sheets. The process benefits both the financing companies and the investors.įor the financing companies, new capital is raised at more affordable rates than they could get through their commercial banks. It takes the illiquid assets of a financing company (the leases, loans, mortgages and credit card debts of its customers), pools them and transforms them into highly liquid securities that are sold to investors. Securitization is the process used to create asset-backed securities (ABS). ![]() Growth & Transition Capital financing solutions Kauffman Fellows Program Partial Scholarship Venture Capital Catalyst Initiative (VCCI) Industrial, Clean and Energy Technology (ICE) Venture Fund
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