EXPERIENCE. SOLUTIONS. RESULTS.
Securitization is a sale of receivables between two parties. One of the parties (the “Seller”) is the company selling the receivables and the other is a securitization vehicle (e.g. Trust), an entity that buys the receivables.
The Trust issues debt obligations in order to raise funds that are then used to purchase the receivables from the Seller. After the initial sale, the Trust uses the collections received on the receivables (which it now owns) to pay the interest and principal on the debt obligations that it has issued. Once the obligations of the Trust have been satisfied, all remaining collections on the receivables are then returned to the Seller.
From certain credit enhancements structured into the securitization transaction, the Trust is privately rated and enjoys the lowest possible cost of funds. If the Seller uses the proceeds on the sale of receivables to retire its debt, the interest costs on that debt are then essentially replaced by the interest costs of the Trust because all cash flows over and above those required to satisfy the Trust obligations are returned to the Seller.
Shanker Basu is responsible for the daily operational activities of the Audit & Compliance Team. His role includes the coordination of field audits, setting of risk ratings for Securcor’s sellers and the overall review of compliance standards. Shanker is also the chairperson of the Securcor Financial Group Risk Committee and in charge of Back Up Servicer business of the Group, which at present handles more than 30 contracts. Shanker has extensive experience in International Banking in general and structured finance.
In many cases, the Seller continues to service the securitized portfolio so the transaction is seamless to the lessee, the Seller’s client.