APS

In securitisation, APS stands for Asset Protection Scheme. It is a type of insurance that protects investors from losses in the event of a default on the underlying assets. APS is typically purchased by the issuer of the securitisation, and it can be used to cover losses on both principal and interest payments.

There are a number of different APS providers, and the terms of the insurance can vary depending on the specific transaction. However, most APS policies will cover losses up to a certain percentage of the outstanding principal balance. In addition, some APS policies may also cover losses on interest payments.

The use of APS can help to reduce the risk of a securitisation default, and it can make the securities more attractive to investors. However, APS can also be expensive, and it is important to carefully consider the terms of the insurance before purchasing it.

Here are some of the benefits of using APS in securitisation:

- It can help to reduce the risk of a default on the underlying assets.
- It can make the securities more attractive to investors.
- It can help to protect investors from losses.

Here are some of the drawbacks of using APS in securitisation:

- It can be expensive.
- The terms of the insurance may be complex.
- The insurance may not cover all losses.

Overall, APS can be a valuable tool for securitisation issuers and investors. However, it is important to carefully consider the benefits and drawbacks before purchasing it.