Invested Amount

The invested amount is the amount of money that investors have put into a securitisation transaction. The invested amount is used to purchase the underlying assets, which are then used to generate cash flow for the investors.

The invested amount is typically divided into different tranches, with each tranche having a different risk profile. The tranches with the highest risk have the lowest yields, while the tranches with the lowest risk have the highest yields.

The invested amount can be used to calculate a number of different metrics, including:

• The loan-to-value ratio: The loan-to-value ratio is the ratio of the invested amount to the value of the underlying assets. A higher loan-to-value ratio indicates that the securitisation is more risky.
• The credit rating: The credit rating of a securitisation is determined by a number of factors, including the loan-to-value ratio, the quality of the underlying assets, and the amount of ICE.
• The yield: The yield of a securitisation is the amount of interest that the investors receive on their investment. The yield is typically expressed as a percentage of the invested amount.

The invested amount is an important factor to consider when investing in a securitisation. The higher the invested amount, the more money that the investors have put into the securitisation. This means that the securitisation is less likely to default, but it also means that the investors will receive a lower yield.

Here are some of the applications of the invested amount in securitisation:

• To calculate the loan-to-value ratio: The loan-to-value ratio is a key metric that is used to assess the risk of a securitisation. The higher the loan-to-value ratio, the more risky the securitisation.
• To determine the credit rating: The credit rating of a securitisation is determined by a number of factors, including the loan-to-value ratio. A higher credit rating indicates that the securitisation is less risky.
• To calculate the yield: The yield of a securitisation is the amount of interest that the investors receive on their investment. The yield is typically expressed as a percentage of the invested amount.

The invested amount is a useful tool for both investors and originators. For investors, it can help to assess the risk of a securitisation and to determine the potential yield. For originators, it can help to determine the amount of money that they need to raise to finance the securitisation.