The issue date is the date on which the securitisation transaction is completed and the securities are issued to investors. The issue date is important for a number of reasons, including:
- It marks the start of the securitisation transaction: The issue date marks the start of the securitisation transaction. This is when the underlying assets are transferred to the securitisation vehicle and the securities are issued to investors.
- It is used to determine the maturity date of the securities: The maturity date of the securities is typically set on the issue date. This is the date on which the securities will mature and the investors will receive their principal and interest payments.
- It is used to calculate the interest payments: The interest payments on the securities are typically calculated from the issue date. This means that investors will receive interest payments for the period of time between the issue date and the maturity date.
Here are some of the applications of the issue date in securitisation:
- To determine the liquidity of the securities: The liquidity of the securities is typically higher on the issue date. This is because there is more demand for the securities on the issue date and there are fewer securities available for trading.
- To determine the yield of the securities: The yield of the securities is typically lower on the issue date. This is because the securities are typically priced at a premium on the issue date.
- To determine the credit rating of the securities: The credit rating of the securities is typically determined on the issue date. This is because the credit rating agencies need to have access to all of the information about the securitisation transaction before they can issue a credit rating.
The issue date is an important date in the securitisation process. It marks the start of the transaction and it is used to determine a number of important factors, such as the maturity date of the securities and the yield of the securities.