Service to the Securities Industry

BORROWER OBLIGATOR

http://www.selectivefinancialservices.org/wp-content/uploads/2019/11/1-Borrower-and-or-Obligor.mp3 OBLIGOR is a person who owes a legal obligation to another person. In the context of financing arrangements, an obligor is usually a debtor (for example, a BORROWER) or someone who has given security or a guarantee for the payment of a debt or the performance of an obligation. Read more…

Service to the Securities Industry

ORIGINATOR SPONSOR

http://www.selectivefinancialservices.org/wp-content/uploads/2019/11/2-Originator-and-or-Sponsor.mp3 The ORIGINATOR either has or creates the underlying assets, i.e. transaction receivables to be securitized. At the end of the transaction, the ORIGINATOR profit, if retained and subject to any losses to the extent agreed by the ORIGINATOR in the transaction is paid off. An ORIGINATOR is typically an Read more…

Service to the Securities Industry

INVESTOR

http://www.selectivefinancialservices.org/wp-content/uploads/2019/11/3-Investors.mp3 An INVESTOR is any person or other entity (such as a firm or mutual fund) who commits capital with the expectation of receiving financial returns. INVESTORS utilize investments in order to grow their money and/or provide an income during retirement, such as with an annuity. INVESTORS in securities subscribe Read more…

Service to the Securities Industry

ASSET SERVICER

http://www.selectivefinancialservices.org/wp-content/uploads/2019/11/4-Asset-Servicer.mp3 ASSET SERVICING is an administration service provided by a central securities depository or CUSTODIAN in connection with the custody and/or safekeeping of financial instruments (e.g. the processing of corporate events or the handling of taxes). (European Central Bank) In the context of securitization, ASSET SERVICING describes the process of Read more…

Service to the Securities Industry

ASSET OR COLLATERAL MANAGER

http://www.selectivefinancialservices.org/wp-content/uploads/2019/11/6-Asset-or-Collateral-Manager.mp3 COLLATERAL MANAGEMENT is the process of two parties exchanging assets in order to reduce credit risk associated with any unsecured financial transactions between them. Such counterparties include banks, broker-dealers, insurance companies, hedge funds, pension funds, ASSET MANAGERS and large corporations. Guarantee MANAGEMENT is the procedure of two gatherings trading Read more…

Service to the Securities Industry

TRUSTEE

http://www.selectivefinancialservices.org/wp-content/uploads/2019/11/5-Trustee.mp3 A security TRUSTEE is a person or corporate entity which holds security for the benefit of others. The security involved may comprise a charge over property, a debenture over the assets and undertaking of a company, a bank account charge or a combination of other types of security for Read more…

Service to the Securities Industry

CREDIT ENHANCEMENT PROVIDER

http://www.selectivefinancialservices.org/wp-content/uploads/2019/11/7-Credit-Enhancement-Provider.mp3 A company that is raising cash by issuing a bond or security may use credit enhancement to lower the interest rate it must pay to INVESTORS. If the company can get a guarantee from a bank to assure a portion of the repayment, the rating on the bond issue Read more…

Service to the Securities Industry

CREDIT RATING AGENCIES

http://www.selectivefinancialservices.org/wp-content/uploads/2019/11/8-Credit-Rating-Agencies.mp3 A credit rating agency, also called a ratings service, is a company that assigns credit ratings, which rate a debtor’s ability to pay back debt by making timely principal and interest payments and the likelihood of default. An agency may rate the creditworthiness of issuers of debt obligations, of Read more…