Arranger

An arranger is a financial institution that is responsible for putting together the securitisation transaction. The arranger typically works with the issuer, the investors, and the servicer to structure the transaction and to market it to investors.

The arranger typically performs the following tasks:

Structure the transaction: The arranger works with the issuer to determine the type of securitisation, the structure of the securities, and the credit rating of the securities.
Market the securities: The arranger markets the securities to investors and helps to sell them.
Underwrite the securities: The arranger may underwrite the securities, which means that it agrees to buy the securities if they are not sold to investors.
Service the securities: The arranger may service the securities, which means that it collects payments from the borrowers and distributes payments to the investors.
The arranger typically charges a fee for its services. The fee is typically a percentage of the amount of securities that are issued.

Here are some of the key responsibilities of an arranger in securitisation:

Structuring the transaction: The arranger works with the issuer to determine the type of securitisation, the structure of the securities, and the credit rating of the securities.
Marketing the securities: The arranger markets the securities to investors and helps to sell them.
Underwriting the securities: The arranger may underwrite the securities, which means that it agrees to buy the securities if they are not sold to investors.
Servicing the securities: The arranger may service the securities, which means that it collects payments from the borrowers and distributes payments to the investors.
The arranger plays a key role in securitisation. The arranger's expertise and experience can help to ensure that the securitisation transaction is successful.