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    Spring 2022 - FIN625 - 2

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    The document provides instructions for Assignment 2 related to the topic of securitization for the course FIN625 Credit & Risk Management. It asks students to explain the steps involved in securitization, list the parties involved and their roles, discuss advantages for ABC Bank, and explain how asset-backed securities work and the role of external rating agencies. The assignment is due on August 30, 2022 and students are advised to submit early to avoid issues from power outages. Late submissions or those not in the proper format will receive zero marks.

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    Spring 2022 - FIN625 - 2

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    9 views3 pages
    The document provides instructions for Assignment 2 related to the topic of securitization for the course FIN625 Credit & Risk Management. It asks students to explain the steps involved in securitization, list the parties involved and their roles, discuss advantages for ABC Bank, and explain how asset-backed securities work and the role of external rating agencies. The assignment is due on August 30, 2022 and students are advised to submit early to avoid issues from power outages. Late submissions or those not in the proper format will receive zero marks.

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    Spring 2022_FIN625_2

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    The document provides instructions for Assignment 2 related to the topic of securitization for the course FIN625 Credit & Risk Management. It asks students to explain the steps involved in securitization, list the parties involved and their roles, discuss advantages for ABC Bank, and explain how asset-backed securities work and the role of external rating agencies. The assignment is due on August 30, 2022 and students are advised to submit early to avoid issues from power outages. Late submissions or those not in the proper format will receive zero marks.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    9 views3 pages

    Spring 2022 - FIN625 - 2

    Uploaded by

    Entertainment Status
    The document provides instructions for Assignment 2 related to the topic of securitization for the course FIN625 Credit & Risk Management. It asks students to explain the steps involved in securitization, list the parties involved and their roles, discuss advantages for ABC Bank, and explain how asset-backed securities work and the role of external rating agencies. The assignment is due on August 30, 2022 and students are advised to submit early to avoid issues from power outages. Late submissions or those not in the proper format will receive zero marks.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    SEMESTER SPRING 2022

    CREDIT & RISK MANAGEMENT


    (FIN625)

    Assignment – 2

    Total Marks: 10 Due Date: August 30, 2022

    Topic: Securitization
    ABC bank is a well-established bank. When the banking operations were started by the ABC
    bank, the bank provides different types of loans to their customers. However, over time the bank
    has begun to involve in different contemporary processes such as securitization. In credit
    portfolio management, securitization is a revolutionary concept. It is also one of the methods to
    purchase/sale of credit assets or loans. Other methods are syndicated loans and distressed debts.
    There are different securitization exposures such as asset-backed securities, mortgage-backed
    securities, liquidity facilities, credit enhancement, currency and interest rate swaps.

    Required:

    1. Explain in detail what are the different steps involved in the process of securitization of
    loans. (Marks 2)
    2. Different parties are involved in the process of securitization. You are required to enlist
    the name of these different parties. Also, explain the role of each party in the
    securitization transactions. (Marks 2)
    3. What significant advantages the ABC bank can obtain through the securitization of loans?
    (Marks 2)
    4. Asset-backed securities are one of the main securitization products. Explain how
    Asset- backed securities transactions work. (Marks 2)
    5. External rating agencies perform different roles. Explain the external rating agencies’ role
    in Asset-backed securities deals. (Marks 2)

    1
    IMPORTANT

    24 hours extra/grace period after the due date is usually available to overcome
    uploading difficulties. This extra time should only be used to meet emergencies, and
    above mentioned due dates should always be treated as final to avoid any
    inconvenience.

    OTHER INSTRUCTIONS
    DEADLINE

    • Make sure to upload the solution file before the due date on VULMS.

    • Any submission made via email after the due date will not be accepted.

    FORMATTING GUIDELINES
    • Use the font style “Times New Roman” or “Arial” and font size “12”.

    • It is advised to compose your document in MS Word format.

    • You may also compose your assignment in Open Office format.

    • Use black and blue font colors only.

    REFERENCING GUIDELINES
    • Use APA style for referencing and citation. For guidance, search “APA reference
    style” in Google and read various websites containing information for better
    understanding or visit:

    http://linguistics.byu.edu/faculty/henrichsenl/apa/APA01.html

    RULES FOR MARKING

    Please note that your assignment will not be accepted and marked ZERO, if:

    • It is submitted after the due date.

    • The file you uploaded does not open or is corrupt.

    • It is in any format other than MS-Word or Open Office; e.g. Excel, PowerPoint, PDF,
    etc.

    2
    • It is cheated or copied from other students, the internet, websites, other reading
    materials, books, journals, etc.

    Note related to load shedding: Please be proactive

    Dear Students!

    As you know that post-Mid-Term semester activities have been started and the
    load shedding problem is also prevailing in our country nowadays. Keeping in view
    the fact, you all are advised to post your activities as early as possible without
    waiting for the due date. For your convenience, the activity schedule has already
    been uploaded on VULMS for the current semester. Therefore no excuse will be
    entertained after the due date of assignments, quizzes, or GDBs.

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