Abstract
Reverse securitisation technique is lesser (if not) discussed in the literature and differs substantially from the conventional receivable (or supplier-led) securitisation. Technology platform-driven buyer-led securitisation approach can result in the best pricing option and can in part overhaul a domain that has traditionally been ruled by specialised banks. Due to the complex financial structure, high transaction costs are seen as the main barrier.
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Notes
- 1.
Mevissen (2005) considers that an optimal originator’s pooled portfolio is composed by 200 to 300 obligors from different industries and geographical locations (p. 49).
- 2.
Usually from 30 to 90 days in maturity, rarely more than 270 (Fabozzi et al. 2006, p. 156).
- 3.
As a general rule, only investment grade rated debt is purchased by the majority of funds, pension funds and retail investors (ERT 2014, p.42).
- 4.
Under German Law (WpPG), a placement is qualified as private if securities are offered only to institutional investors or to a maximum of 150 non-qualified investors (Schlitt 2014, p. 66).
- 5.
It is important to note that only eligible payables can be financed, and they are submitted to a series of decision constraints. For example, payables must be free from any liens or security interests and must not have been previously pledged or sold (Alite Group 2014, p. 10).
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Hofmann, E., Strewe, U., Bosia, N. (2018). Background II—What Is Reverse Securitisation?. In: Supply Chain Finance and Blockchain Technology. SpringerBriefs in Finance. Springer, Cham. https://doi.org/10.1007/978-3-319-62371-9_3
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