An offering circular is a document that provides detailed information about a securitisation transaction to potential investors. It is similar to a prospectus, but it is not required to be filed with the securities regulator in all jurisdictions.
The offering circular typically includes information about the following:
- The underlying assets that are being securitised
- The structure of the securitisation
- The risks involved in the securitisation
- The terms of the securities that are being offered
- The fees and expenses associated with the securitisation
The offering circular is an important document for investors to read before they invest in a securitised product. The offering circular will provide investors with the information they need to make an informed decision about whether or not to invest in a securitised product.
Here are some of the applications of offering circulars in securitisation:
- Providing information to investors: The offering circular provides investors with information about the securitisation transaction, including the underlying assets, the structure of the securitisation, the risks involved, and the terms of the securities that are being offered. This information allows investors to make informed decisions about whether or not to invest in a securitised product.
- Complying with regulatory requirements: In some jurisdictions, the offering circular must be approved by the relevant securities regulator before it can be distributed to investors. This ensures that the offering circular contains all of the required information and that it complies with all of the relevant regulations.
- Protecting investors: The offering circular provides investors with information about the risks involved in the securitisation transaction. This helps to protect investors from making uninformed investment decisions.