An information memorandum (IM) is a document that provides potential investors with information about a securitisation transaction. The IM typically includes information about the underlying assets, the structure of the transaction, the risks involved, and the expected returns.
The IM is an important tool for investors who are considering investing in a securitisation transaction. It provides investors with the information they need to make an informed decision about whether or not to invest.
Here are some of the applications of IMs in securitisation:
- To provide investors with information about a securitisation transaction
- To help investors to assess the risks and returns of a securitisation transaction
- To facilitate the marketing of a securitisation transaction
IMs are typically prepared by the issuer of the securitisation transaction. However, they can also be prepared by other parties, such as the arranger or the underwriter.
The IM is a confidential document, and it is not typically made available to the public. However, it is often made available to potential investors who have expressed an interest in the securitisation transaction.
Here are some of the contents of an IM:
- Introduction
- Description of the securitisation transaction
- Description of the underlying assets
- Structure of the securitisation transaction
- Risks involved
- Expected returns
- Conclusion
The IM is a complex document, and it is important for investors to read it carefully before investing in a securitisation transaction. By reading the IM, investors can gain a better understanding of the transaction and the risks involved.