IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpfi/0512012.html
   My bibliography  Save this paper

Common Structures of Asset-Backed Securities and Their Risks

Author

Listed:
  • Tarun Sabarwal

    (Department of Economics, Washington University in St. Louis)

Abstract

In recent years, one area of growing concern in corporate governance is the accounting and transfer of risk using special purpose entities (or trusts). Such entities are used widely in issuing asset-backed securities. This paper provides an overview of the asset-backed securities market, and discusses the common structures used in this market to transform the risks associated with the underlying collateral into risks associated with the issued securities. Understanding these structures is essential to understanding the allocation and transfer of risk among the different parties in an asset-backed transaction – the originator, the special-purpose entity, investors, and related parties such as insurance guarantors. Understanding these structures is also essential in proposing potential solutions to regulatory and accounting concerns about the transfer of risks in asset-backed securities.

Suggested Citation

  • Tarun Sabarwal, 2005. "Common Structures of Asset-Backed Securities and Their Risks," Finance 0512012, EconWPA, revised 29 Dec 2005.
  • Handle: RePEc:wpa:wuwpfi:0512012
    Note: Type of Document - pdf; pages: 25
    as

    Download full text from publisher

    File URL: http://econwpa.repec.org/eps/fin/papers/0512/0512012.pdf
    Download Restriction: no

    More about this item

    Keywords

    Asset-backed Securities; Structured Finance; Special Purpose Entity; Seller Recourse; Corporate Governance;

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpfi:0512012. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA). General contact details of provider: http://econwpa.repec.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.