In securitisation, establishment fees are fees that are charged by the issuer of a
securitisation to cover the costs of setting up the securitisation. These costs can include the costs of underwriting the loans, the costs of structuring the securitisation, and the costs of marketing the securitisation.
Establishment fees are typically paid by the investors in the securitisation. The amount of the establishment fee can vary depending on the size and complexity of the securitisation.
Establishment fees can be a significant cost for investors in securitisations. However, they can also help to ensure that the securitisation is properly structured and marketed, which can help to reduce the risk of losses for investors.