Canada financial stability
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India and Canada: Two Different Markets, One Common Investor Question
Canada and India have very different financial systems, yet investors in both ask fundamentally the same question before buying a structured product: “Do I fully understand the credit and structure of this deal?” In Canada, many securitizations (especially RMBS) come with government guarantees. In India, securitizations are typically driven by non-bank financial companies (NBFCs) and banks without…
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Why Reporting Discipline Matters After a Structured Finance Transaction Closes
Closing a securitization deal is only half the story; what comes after is equally important. Once a structured finance transaction closes, strict reporting discipline becomes critical. Regular, transparent reporting reassures investors, regulators, and rating agencies that the deal is performing as expected. This discipline covers all manner of information: servicer remittance reports, collateral performance statistics, compliance with…
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What Makes a Securitization Transaction Investor-Friendly?
From an investor’s viewpoint, the “friendliness” of a securitization comes down to several factors: credit quality, structure, transparency, and trust in the parties. In a friendly deal, investors clearly understand where the cash is coming from, and the risk of losses has been minimized. For example, strong credit enhancement is a cornerstone: most deals include subordination (junior…