Asset-Backed Securities (ABS)
Our firm has been in the forefront of
asset-backed securitization since 1984. Unlike other finance
classes, ABS has remained a vibrant source of creative financing
for originators of financial assets. Our partners are
recognized for their problem-solving approach to counseling
clients, and have participated in the more noteworthy transactions
during the recent financial crisis.
Our wide-ranging clientele includes virtually
every banking and financial institution active in the financing,
purchase and securitization of financial and other assets,
including:
- Issuers, underwriters, lenders and
conduits
- Investors
- Servicers, master servicers and back-up
servicers
- Trustees, administrative agents and
collateral agents
- Credit enhancers and liquidity
providers
- Bulk portfolio sellers and
purchasers
- Portfolio acquisition and warehouse
lenders
These deals have used public and private
offerings of pass-through and pay-through securities, as well as
hybrid certificates such as debt, participation certificates and
commercial paper structures. Increasingly, we have assembled
these transactions to take advantage of the tax benefits of
ownership, or to securitize the residual values of the financed
property.
We frequently create deal structures that
enable the originator to remove the assets from its balance sheet
while treating the securities as debt for tax purposes. We
also have developed other tax-oriented structures that accelerate
income so that the originator can maximize the value of expiring
net operating losses.
We are particularly known for handling so-called “operating
asset” securitization of global assets such as intermodal
containers and other transport assets. In addition, we excel
at using asset securitization to obtain effective warehouse or term
financing of a portfolio or to sell a portion of an appreciated
portfolio. We have shown originators and intermediaries how to use
securitization as a strategic tool for acquisition financing, for
exiting a line of business or for enhanced equipment
marketing.
We are skilled at the creative use of credit support for many
asset securitization transactions that emphasize multiple layers of
third-party and internal credit enhancement, enabling many new
issuers to access this kind of financing.
Areas of Focus:
- Leases and loans for aircraft,
marine, rail, containers and heavy equipment
- Health care and medical equipment
leases and loans
- Telecommunications and technology
equipment leases
- Consumer auto and recreational
vehicle loans
- Student loans
- Export receivables and other trade
receivables
- Installment sales
- Municipal receivables