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ARTICLE · 25 MAY 2004

Securitization of Financial Assets

Holland & Knight LLP
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Mortgage backed (<B>MBS</B>) and asset backed (<B>ABS</B>) securitizations, or more generally, the securitization of financial assets (for purposes of this outline, <B>Securitizations</B>), is a form of structured finance initially developed in the early 1980s in MBS format. It matured in the late 1980's in both MBS and ABS formats and is now a U.S.$500 billion industry in the U.S. alone. In recent years, it has spread to Europe (the largest market outside the U.S.), Latin America and Southe

United StatesFinance and Banking
Timothy Leixner
Timothy Leixner

GENERAL BACKGROUND

Mortgage backed (MBS) and asset backed (ABS) securitizations, or more generally, the securitization of financial assets (for purposes of this outline, Securitizations), is a form of structured finance initially developed in the early 1980s in MBS format. It matured in the late 1980's in both MBS and ABS formats and is now a U.S.$500 billion industry in the U.S. alone. In recent years, it has spread to Europe (the largest market outside the U.S.), Latin America and Southeast Asia (primarily Japan), and the worldwide market is estimated to be in excess of U.S.$2 trillion.

Virtually all forms of debt obligations and receivables (Receivables) have been securitized in the U.S.: residential mortgages; home equity loans; manufactured housing loans; timeshare loans; auto, truck, RV, aircraft and boat loans and leases; credit card receivables; equipment loans and leases; small business loans; student loans; trade receivables (just about any type, i.e., airline tickets,

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