A Lead Manager is an investment bank that is responsible for managing the securitisation transaction. The Lead Manager is typically responsible for the following tasks:
- Structuring the securitisation: The Lead Manager works 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 Lead Manager markets the securitisation to investors. This includes preparing the offering memorandum and conducting roadshows.
- Managing the securitisation: The Lead Manager manages 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.
The Lead Manager is a key player in the securitisation process. They are responsible for structuring, marketing, and managing the securitisation transaction.
Here are some of the applications of Lead Managers in securitisation:
- To share the workload: The Lead Manager shares the workload of structuring, marketing, and managing the securitisation transaction with other investment banks. This can help to speed up the process and to reduce the costs of the securitisation.
- To provide expertise: The Lead Manager has expertise in securitisation transactions, which can be helpful in structuring and managing the securitisation transaction.
- To provide a wider distribution network: The Lead Manager has 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.