Asset-Backed Commercial Paper (ABCP)
Asset backed securities can be categorized into two types based on their time to maturity: one is a long to intermediate term Asset Backed Securities (ABS) and the other is a short-term Asset Backed Commercial Paper (ABCP). ABCP refers to ABS commercial papers issued for the length of one year or shorter. Intermediate term ABS have time to maturity between one and five years.

Auto Loan Securitization
Auto Loan Securitization is a pooling of multiple auto loans packaged and issued as securities to investors through arrangements of legal structure, cash flow, and credit rating mechanisms. During the securitization period, the originator (seller) will select the most ideal portfolio based on a set of eligibility criteria, such as borrowers’ age, payment records, vehicles types, percentage of loans, and terms of loans from all available car loans. After the screening process, we will proceed with the risk assessment, cash flow simulation and credit tranch. The securities are then offered to investors after confirmation are obtained from credit rating agencies and regulatory approval. Auto loan securitization often adopts the static or revolving structure. Depending on the issuer’s needs, additional new loans may or may not be incurred to the existing portfolio. Investors’ risks are minimized through credit enhancement techniques; default risks, prepayment risks,..etc. are also emphasized to evaluate the risk profile of auto loans.

Credit Card Receivables Securitization
Credit Card Receivables Securitization is a group of multiple credit card receivables packaged and issued as securities to investors through arrangements of legal structure, cash flow, and credit rating mechanisms. During the securitization period, the originator (seller) will select the most ideal portfolio based on a set of eligibility criteria, such as credit cardholders’ age, payment records, credit limits, revolving interest rates, and monthly payment rates from all available credit cards. After the screening process, we will proceed with the risk assessment, cash flow simulation and credit tranch. The securities are then offered to investors after confirmation are obtained from credit rating agencies and regulatory approval. Credit Card Receivables Securitization is a revolving debt; therefore, the repayment rate of credit card receivables is not certain. To maintain the stability of the securitization asset portfolio’s cash flow stream, the Revolving Type structure is typically used; that is, the originator will purchase new additions of credit card receivables with the repayments from credit card holders. Investors’ risks are minimized through credit enhancement techniques; default and loan offset risks are also emphasized to evaluate the risk profile of auto loans.

Lease Receivables Securitization
Lease Receivables Securitization is a pooling of Lease Receivables packaged and issued as securities to investors through arrangements of legal structure, cash flow, and credit rating mechanisms. During the securitization period, the originator (seller) will select the most ideal portfolio based on a set of eligibility criteria, such as lessees’ payment records, leasing equipment types, and lease terms from all available credit cards. After the screening process, we will proceed with the risk assessment, cash flow simulation and credit tranch. The securities are then offered to investors after confirmation from credit rating agencies and regulatory approval are obtained. Lease receivables securitization often adopts the static or revolving structure. Depending on the issuer’s needs, additional new lease receivables may or may not be incurred to the existing portfolio. Investors’ risks are minimized through credit enhancement techniques; default risks, dilution risks, equipment damage risks are also emphasized to evaluate the risk profile of auto loans.

Residential Mortgage Securitization
Residential Mortgage Securitization is a pooling of multiple Residential Mortgages packaged and issued as securities to investors through arrangements of legal structure, cash flow, and credit rating mechanisms. During the securitization period, the originator (seller) will select the most ideal portfolio based on a set of eligibility criteria, such as borrowers’ age, credit records, locations of properties, percentage of loans, and terms of loans from all available residential mortgages. After the screening process, we will proceed with the risk assessment, cash flow simulation and credit tranch. The securities are then offered to investors after confirmation from credit rating agencies and regulatory approval are obtained. In general, Residential Mortgage Securitization usually adopts the Static Type structure; new residential mortgages will not be added to the asset portfolio. Investors’ risks are minimized through credit enhancement techniques; default risks, prepayment risks,..etc. are also emphasized to evaluate the risk profile of residential mortgage.

Trade Receivables Securitization
Trade Receivables Securitization is a pooling of multiple Trade Receivables packaged and issued as securities to investors through arrangements of legal structure, cash flow, and credit rating mechanisms. During the securitization period, the originator (seller) will select the most ideal portfolio based on a set of eligibility criteria, such as debtors’ locations, credit period, currency, and overdue ratings from all available trade receivables. After the screening process, we will proceed with the risk assessment, cash flow simulation and credit tranch. The securities are then offered to investors after confirmation from credit rating agencies and regulatory approval are obtained. Trade Receivables are short term and the revolving type structure is adopted. To achieve longer securitization periods, the Revolving Type structure is usually used; that is, within the maturity period, the originator will purchase new additions of trade receivables with the payment receipts. Investors’ risks are minimized through credit enhancement techniques; default and loan offset risks.

Non-Performing Loan Securitization
Non-Performing Loan Securitization is a pooling of Non-Performing Loans packaged and issued as securities to investors through arrangements of legal structure, cash flow, and credit rating mechanisms. Non-Performing Loans are also known as bad loans, overdue loans, receivables under collection, and loans still under normal payment statuses, but with circulating bonds rated lower than CCC level. During the securitization period, the originator (seller) will select the most ideal portfolio based on a set of eligibility criteria, such as debtors’ locations, credit period, currency, and overdue ratings from all available non-performing loans. After the screening process, we will proceed with the risk assessment, cash flow simulation and credit tranch. The securities are then offered to investors after confirmation from credit rating agencies and regulatory approval are obtained. The asset management agency is particularly important to a Non-Performing Loan Securitization since the asset management agency’s expertise is instrumental to increasing collection rates of these non-performing loans. Investors’ risks are minimized through credit enhancement techniques; default risks, prepayment risks,..etc. are also emphasized to evaluate the risk profile of non-performing loans.

Future Cash Flows Securitization
Future Cash Flows Securitization is a pooling of multiple loans packaged and issued as securities to investors through arrangements of legal structure, cash flow, and credit rating mechanisms. For example, a pop singer’s future royalty fees generated from his/her albums or future income of an airline company can all be securitized. Since the underlying asset used for securitization is based on future cash flows as opposed to that of other debt securitiztion products, risk evaluation and cash flow simulation for this type of securitization is different from that of others. The originator’s potential ability to generate future cash flows generally becomes the evaluation focus such as the financial strength and operational efficiency of the originator , market analysis (ex: customer base, market competitiveness, and market demand), historical and projection of future earnings. The securities are offered to investors after confirmation from credit rating agencies and regulatory approval are obtained. Generally, credit rating of the publicly issued securities and originator will be comparable, unless external credit enhancement is utilized to improve credit rating.