Securitisation Law Attorneys

Understanding Securitisation Law

Securitisation law is a specialized area of legal practice concerned with the process of transforming illiquid assets – such as loans, receivables, or leases – into marketable securities. These securities, often called asset-backed securities (ABS), are then sold to investors. This process allows originators of the assets to free up capital and reduce their credit risk, while investors gain exposure to a diversified stream of income.

The process of securitisation is highly regulated and involves several key stages. At its core, it involves a special purpose vehicle (SPV) – a legal entity created solely for this purpose. The SPV purchases the underlying assets from the originator, then issues securities backed by the cash flows generated by those assets. Our experienced attorneys assist clients through every step of this process, providing crucial legal advice and ensuring compliance with complex regulations.

• Structuring the Transaction: We assist in structuring the securitisation transaction to optimize its legal and economic benefits, considering factors like asset quality, legal documentation, and investor demand.
• Due Diligence: We conduct thorough due diligence on the underlying assets to assess their value and identify potential risks. This includes examining loan agreements, credit ratings, and legal documentation.
• Documentation: We prepare and review all legal documentation associated with the securitisation, including SPV agreements, security documents, and investor agreements. Crucially, this includes ensuring compliance with laws such as the Securities Act and related regulations.
• Regulatory Compliance: We navigate the complex regulatory landscape surrounding securitisation, including guidelines from agencies like the SEC (Securities and Exchange Commission) and Basel III. This includes advising on capital requirements and disclosure obligations.
• Ongoing Monitoring: We provide ongoing monitoring and support to ensure that the securitised assets and securities continue to comply with legal and regulatory requirements.

Key Areas of Expertise

Our legal team possesses deep expertise in various aspects of securitisation law, including:

• Asset-Backed Securities (ABS): Structuring and issuing ABS tranches.
• Collateralised Loan Obligations (CLOs): Navigating the complexities of CLO transactions.
• Real Estate-Backed Securities: Securitising real estate loans and mortgages.
• Regulatory Compliance: Ensuring compliance with applicable securities laws and regulations.

Securitisation can be a complex undertaking. Engaging our legal team provides clients with the knowledge and expertise needed to successfully navigate this process, mitigate risks, and achieve their investment objectives. We focus on building long-term relationships with our clients based on trust and understanding.