The trustee has a number of duties, including:
- Holding the underlying assets: The trustee holds the underlying assets in trust for the investors.
- Collecting the cash flows: The trustee collects the cash flows from the underlying assets and distributes them to the investors.
- Managing the trust: The trustee manages the trust in accordance with the trust deed.
- Protecting the interests of the investors: The trustee protects the interests of the investors by ensuring that the trust is managed in a prudent and efficient manner.
The trustee is a critical party in a securitisation. The trustee's duties are important to ensure that the investors' interests are protected.
Here are some of the applications of trustees in securitisation:
- To provide independent oversight: The trustee provides independent oversight of the trust. This means that the trustee is not affiliated with the originator or any other party to the securitisation.
- To protect the interests of the investors: The trustee protects the interests of the investors by ensuring that the trust is managed in a prudent and efficient manner.
- To reduce risk: The trustee can reduce risk by ensuring that the trust is managed in accordance with the trust deed.
- To improve liquidity: The trustee can improve liquidity by making it easier to sell the securitisation to investors. This is because investors will be more confident in the securitisation if they know that the trust is managed by a reputable trustee.
Trustees are a valuable tool for securitisation. They can be used to provide independent oversight, protect the interests of the investors, reduce risk, and improve liquidity.