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Securitization

Securitization plays a vital role in modern financial markets. It enables institutions to transform illiquid assets into tradable securities, creating new financing opportunities and spreading risk. For professionals in the financial sector, a solid understanding of the mechanism, risks, and regulatory framework surrounding securitization is of essential importance. 

The Securitization training provides an in-depth and practice-oriented exploration of the key principles, structures, and applications of securitization. Participants will gain insight into asset-backed securities (ABS), collateralized debt obligations (CDOs), risk management strategies, and legal compliance. 

This Securitization training focuses on pooling and selling non-tradable assets, such as mortgages, car leases, credit card debt, corporate loans, and standardized, tradable securities. Securitization is used by banks to raise funding at attractive rates and to remove assets from their balance sheets, thereby achieving solvency benefits. These securities typically offer investors an attractive return with a clearly defined and transparent risk profile.

This interactive training is specifically designed for financial professionals, risk managers, legal advisors, and regulatory specialists. Under the guidance of experienced experts, theory is combined with practical case studies, allowing participants to apply the knowledge directly in their day-to-day work.

What to expect?

✅ The fundamental principles of securitization & structured finance
✅ Securitization structures & the transaction process
✅ Regulatory and legal aspects (including Basel III, IFRS, ESG impact)
✅ Risk assessment & credit enhancement techniques
✅ Market developments & real-life examples

This training can also be organized in-company (in both Dutch and English), with the program content tailored to the needs of the specific audience and policy agenda.

Trainer
The trainer is Sjoerd Wegener Sleeswijk. In addition to being a specialist at 3Masters Opleidingen, Sjoerd is an experienced professional in the financial sector with an impressive track record. Since 2001, he has been affiliated with NIBC Bank, where he has held various leadership positions, including Head of Portfolio Management, Head of European Mortgage Solutions, and Head of Strategy & Development. In these roles, he was responsible for managing mortgage portfolios, analyzing credit risks, and developing financing programs.

His extensive knowledge and experience make him a highly regarded trainer and speaker in the fields of securitization, covered bonds, capital markets, and structured finance.
The program below is offered in 3 modules, each consisting of a half-day session:

Module 1
• Overview of the different types of securitizations
• Key components of a securitization
• Motives of originators and investors
• Credit ratings – what do they really mean?
• History of the securitization market
• Volumes and the latest trends

📌 Collateral Analysis
• Rating agencies’ approach
• Asset analysis
• Variables influencing the likelihood and severity of loss
• Scenario analysis based on historical data
• Cash flow modeling: the impact of timing

📌 Assessment of the Seller and Servicer
• Experience/track record
• Procedures and policies of credits
• Commercial strategy
• Replacement risks and options

📌 Liability Structure
• Structuring the waterfall
• Cash flows: sources and use of funds
• Waterfall structures: sequential, pro rata, and turbo
• Differences in waterfalls before and after enforcement
• Expected vs legal maturity, soft bullet vs hard bullet, and optional redemption

📌 Protection bondholders
• Eligibility criteria
• Coverage tests and consequences
• Sources of liquidity
• Hedging and derivatives /counterparty risk

📌 Legal considerations
• Asset transfer, bankruptcy remoteness
• Settlement, commingling, clawback risk
• Security interests, parallel debt
• Representations and warranties
• Events of default

Module 2
📌 Synthetic Securitization
• Differences between true sale and synthetic securitization
• Guarantees, credit derivatives, and credit-linked notes
• Synthetic securitization structures

📌 Regulation
• EU Securitisation Regulation
• Risk retention options
• Investor due diligence requirements
• Simple, Transparent and Standardized (STS)
• STS for synthetic securitizations
• Significant Risk Transfer (SRT)

📌 Buy-to-Let RMBS
• Overview of market participants and business models
• Overview of the rental housing market
• Buy-to-let product characteristics
• Regulations in buy-to-let
• Implementation of ‘Affordable Rent Act’

📌 Central Bank Support
• Packaging assets for repos
• ECB repo criteria
• ECB purchase programs and their impact on the market

Module 3
📌 Forms of financing
• Captive vs non-captive financing
• Overview of market participants and business models
• Car loans vs car leasing
• Financial vs operational lease
• How to manage operational assets
• Waterfall structures
• Asset transfer

📌 CDOs
• Characteristics of CDOs
• Overview of market participants and business models
• Balance Sheets vs Arbitrage CDOs
• True sale vs synthetic structures
• Static vs managed structures
• Rating analysis
• Role of the asset manager
• Life cycle of a CLO
• Recent developments in CLOs

📌 The credit crisis and the role of securitization
• Subprime mortgages
• Excesses in asset repackaging
• Consequences for other securitizations
• Changes in rating criteria since credit crisis

📌 ESG securitization
• What is green securitization?
• Green assets vs green use of proceeds
• Challenges in the ESG securitization market
• Greenwashing and overregulation
• EU Green Bond Standard
• Recent market developments
After completing this training:

✅ You will have a solid understanding of the fundamental concepts and terminology of securitization;
✅ You will be able to assess the risk of a securitization transaction by analyzing the collateral, the seller, the servicer, and the structure;
✅ You will understand the impact of various variables on the models used by rating agencies and be able to identify differences in their approaches;
✅ You will be able to identify and evaluate risks and risk-mitigating factors within transaction structures;
✅ You will be able to use the acquired knowledge in your daily work, aligned with the level of your professional tasks and responsibilities.

Who is this training designed for?
📌 Banking and financial professionals
📌 Legal and compliance officers
📌 Risk managers & auditors
📌 Investors & asset managers
📌 Trust professionals

Customized training?
Securitization is a complex and continuously evolving part of the financial sector. To ensure that your team not only understands the theory but can also effectively apply it within your specific business context, 3Masters offers customized training programs in securitization. Contact us to discuss the possibilities!

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Any questions?

Let us know.
We love to hear from you.

Frequently Asked Questions

In Dutch or English.

The trainers at 3Masters work within the field of the training. They are specialists who engage with the training content daily. At 3Masters, we believe it is important that trainers have extensive experience and are enthusiastic about sharing their knowledge with participants.

Together with our trainers, we aim for an optimal trainer-to-participant ratio. Therefore, we work with training groups of approximately 12 participants, ensuring a good balance between experience, knowledge, and skills.

The training sessions can be organized both in-company and virtually. Together with the client, we determine what works best for the participants. Everything is possible, and our trainers are flexible.

The timing of the training will be determined in consultation with the client. Morning, afternoon, and evening sessions are all possible.

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