- Pricing date is the date on which the securities in a securitisation are priced.
- On the pricing date, the issuer of the securitisation will determine the price of the securities and will issue the securities to investors.
The pricing date is an important date in the securitisation process because it is the date on which the securitisation is officially created.
- After the pricing date, the securitisation will begin to trade on the secondary market.
There are a number of factors that can affect the pricing of a securitisation, including:
- The underlying assets: The price of the securitisation will be based on the value of the underlying assets.
- The prepayment risk: The price of the securitisation will be affected by the prepayment risk.
- The credit risk: The price of the securitisation will be affected by the credit risk of the underlying assets.
- The interest rate environment: The price of the securitisation will be affected by the interest rate environment.
The pricing date is also used to determine the amount of interest that will be paid to investors.
- The interest rate will be based on the yield curve on the pricing date.
The pricing date is an important date in the securitisation process and it has a number of implications for the securitisation.
Here are some applications of pricing date in securitisation:
- To determine the price of the securities: The pricing date is used to determine the price of the securities in a securitisation.
- To issue the securities: On the pricing date, the issuer of the securitisation will issue the securities to investors.
- To determine the amount of interest that will be paid to investors: The pricing date is also used to determine the amount of interest that will be paid to investors.
- To begin trading on the secondary market: After the pricing date, the securitisation will begin to trade on the secondary market.