Joint Lead Managers (JLMs) are a group of investment banks that work together to structure and manage a securitisation transaction. The JLMs are responsible for marketing the securitisation to investors and for ensuring that the transaction is completed on time and on budget.
The JLMs have a number of responsibilities, including:
- Structuring the securitisation: The JLMs work with the originator to structure the securitisation transaction. This includes determining the type of securitisation, the underlying assets, and the tranches of securities.
- Marketing the securitisation: The JLMs market the securitisation to investors. This includes preparing the offering memorandum and conducting roadshows.
- Managing the securitisation: The JLMs manage the securitisation transaction from start to finish. This includes collecting payments from the underlying assets, making payments to investors, and managing the risks of the securitisation.
Here are some of the applications of JLMs in securitisation:
- To share the workload: The JLMs share the workload of structuring, marketing, and managing the securitisation transaction. This can help to speed up the process and to reduce the costs of the securitisation.
- To provide expertise: The JLMs have different areas of expertise, which can be helpful in structuring and managing the securitisation transaction. For example, one JLM may have expertise in marketing securitisations to institutional investors, while another JLM may have expertise in managing the risks of securitisations.
- To provide a wider distribution network: The JLMs have a wider distribution network than a single investment bank. This can help to ensure that the securitisation is marketed to a wider range of investors.
The JLMs are a key player in the securitisation process. They are responsible for structuring, marketing, and managing the securitisation transaction.