A manager is a person or entity that is responsible for overseeing the securitisation transaction. The manager is responsible for a number of tasks, including:
- Structuring the securitisation transaction: The manager is responsible for structuring the securitisation transaction, which includes determining the type of securitisation, the underlying assets, and the tranches of securities that will be issued.
- Marketing the securities: The manager is responsible for marketing the securities to investors.
- Servicing the securities: The manager is responsible for servicing the securities, which includes collecting payments from the underlying assets and distributing those payments to the investors.
- Managing the risks: The manager is responsible for managing the risks associated with the securitisation transaction, such as the risk of default by the underlying borrowers.
The applications of a securitisation manager include:
- To provide expertise: The manager typically has a team of experienced professionals who can provide expertise in areas such as structuring, marketing, and servicing. This can be beneficial for the issuer, as it can help to ensure that the securitisation transaction is structured effectively and that the securities are marketed successfully.
- To reduce risk: The manager can help to reduce risk for the issuer by managing the risks associated with the securitisation transaction. For example, the manager can monitor the performance of the underlying assets and take steps to mitigate the risk of default.
- To improve liquidity: The manager can help to improve liquidity for the issuer by marketing the securities to investors. This can make it easier for the issuer to raise capital and to sell the securities in the secondary market.
A securitisation manager can be a valuable tool for securitisation transactions. They can help to provide expertise, reduce risk, and improve liquidity.
Here are some of the benefits of using a securitisation manager:
- Expertise: The manager typically has a team of experienced professionals who can provide expertise in areas such as structuring, marketing, and servicing. This can be beneficial for the issuer, as it can help to ensure that the securitisation transaction is structured effectively and that the securities are marketed successfully.
- Reduced risk: The manager can help to reduce risk for the issuer by managing the risks associated with the securitisation transaction. For example, the manager can monitor the performance of the underlying assets and take steps to mitigate the risk of default.
- Improved liquidity: The manager can help to improve liquidity for the issuer by marketing the securities to investors. This can make it easier for the issuer to raise capital and to sell the securities in the secondary market.
Overall, a securitisation manager can be a valuable tool for securitisation transactions. They can help to provide expertise, reduce risk, and improve liquidity.