Enstruct’s 3-Day Comprehensive Structured Finance training provides participants with a detailed look at the structured finance industry, the players, structures, and securities involved.  While more qualitative than other Enstruct trainings, the scope is broader so participants are exposed to all facets of the industry and strategies involved in issuing, banking, and investing in structured finance products.  Analytics aren’t left out though as a basic structured finance cash flow example is worked through so the core calculations of a deal are exposed.

The Basics: Structured Finance

I. What is Structured Finance?
II. How Does a Structured Finance Deal Work?
III. Who are the Main Players and What is their Motivation?
IV. Why Execute a Structured Transaction?
Exercise: Identify the Entity and Motivation

Asset Classes in Structured Finance

I. Agency Mortgage Backed Securities
II. Residential Mortgage Backed Securities

a. Non-Conforming / Non-QM

b. Single Family Rental

c. Non-Performing / Re-Performing

III. Commercial Mortgage Backed Securities
IV. Consumer Asset Backed Securities

a. Auto Loans & Leases

b. Student Loans

c. Credit Cards

d. Unsecured

V.Commercial & Esoteric Asset Backed Securities

a. Aircraft Lease

b. Railcar Lease

c. Shipping Container Lease

d. Equipment Lease

e. Auto Rental / Commercial Fleet

f. Whole Business Securitizations

g. Time Share Loans

h. Other Esoterics

VI. Collateralized Loan Obligations

a. Broadly Syndicated

b. Middle Market

Exercise: Match the Characteristics of a Securitization to the Type

Legal Structure of a Securization

I. Special Purpose Vehicles
II. Bankruptcy Remoteness
III. Perfection of Interest
IV. Issuing Entities
Exercise: Is it a Securitization?

Securization Cash Flows

I. Asset Cash Flow Generation

a. Basic Loan Amortization

b. Delinquency

c. Default

d. Prepayment

e. Recovery

f. Combined Loan Amortization

Exercise: Basic Loan Amortization
Exercise: Default/Prepay/Recovery Calculations
Exercise: Combined Loan Amortization
II. Priority of Payments

a. Fees

b. Interest

c. Principal

Exercise: Payment Priority
III. Credit Enhancement

a. Overcollateralization

b. Payment Priority

c. Reserve Accounts

d. Liquidity Facilities

e. Excess Spread

f. Deal Triggers

Exercise: Assessing Credit Enhancement

Deal Documentation

I. Offering Memorandum
II. Indenture
III. Servicer Agreement
IV. Term Sheets
Exercise: OM’s 101, Dissecting Legal Language

The Rating Agency Process

I. The Major Rating Agencies and their Ratings
II. Differences Between Rating to First Loss and Expected Loss
III. Quantitative Aspects of Ratings
IV. Qualitative Aspects of Ratings
Exercise: Example Rating Case

Structured Finance Investors

I. The Sales Process
II. Relative Value Analysis
III. Deal Pricing
Exercise: Which Bond Would You Buy?

Monitoring Structured Finance Investments

I. Overview of a Servicer / Remit Report
II. Early Warning Signs
III. Transaction Remediation
Exercise: Which Bond is in Trouble?