Structured and Leveraged Finance

Day One

09.00 - 09.15 Welcome and Introduction

09.15 - 12.00 Introduction to Structured Finance

• What is “Structured Finance”?
• Types of Structured Finance Transactions
• The Role of Structured Finance in The Global Financial Crisis

Asset Securitization

• Introduction to Asset Securitization
• Obtaining Financing and Risk Transfer through Securitization
• Types of Securitization Transactions
• Structuring Securitization Deals
  • Setting Up the SPV
  • Credit Enhancement Techniques
  • Rating of Structured Securities
  • Payment Management

12.00 - 13.00 Lunch

13.00 - 16.30 Asset Securitization (Continued)

• Securitization of Traditional Asset Pools
  • Car loans
  • Credit card receivables
  • Future flows
  • Intangible assets
  • Case Studies: Recent deals in the aftermath of the crisis
• Asset-Backed Commercial Paper
• Mortgage-backed Securities
• Mortgage Derivatives
  • REMICs, PAC’s, TAC’s and CMO’s
  • IO/PO Strips and Inverse Floaters
• Case Studies and Exercises
• Outlook for the Securitization Industry

Day Two

09.00 - 09.15 Brief recap

09.15 - 12.00 Collaterized Debt Obligations

• Concepts of CDO Transactions
• CDOs and the Financial Crisis
• CDO Structures
  • CLOs and CBOs
  • Arbitrage/Balance Sheet CDO’s
  • Distressed Debt CDO’s
  • Synthetic and Hybrid CDO’s
• Applications of CDO’s
  • Yield Enhancement
  • Bond Market Arbitrage
  • Managing Capital Ratios
  • Improving Bank RAROC
• The Future of CDO’s – they Will Survive, but in a Simpler Form
• Case Studies and Exercises

12.00 - 13.00 Lunch

13.00 - 16.30 Leveraged and Acquisition Finance

• Introduction to Leveraged Finance
• Types of Leveraged Finance Transactions
  • Management Buy-Outs/ Buy-Ins
  • Leveraged Acquisitions
  • Leveraged Build-Ups
  • Leveraged Recapitalization
• Leveraged Loans
  • Issuer and Investor Perspectives
• Valuation in Leveraged Finance
  • Asset-Based Approaches
  • Comparables-Based Approaches
  • Sensitivity analysis

Day Three

09.00 - 09.15 Recap

09.15 - 12.00 Leveraged and Acquisition Finance (Continued)

• Valuation in Leveraged Finance (Continued)
  • Free Cash Flow Approaches (FCFF and FCFE)
• Workshop: Using different approaches to value acquisition target
• The LCDX and LevX Indices
• Synthetic Leveraged Loans
  • Leveraged Loan CDS
• Risks of Leveraged Finance
  • Credit risks
  • Structural risk
  • Interest Rate and FX Risk
  • Tax Risks

12.00 - 13.00 Lunch

13.00 - 16.30 Mezzanine Finance

• Mezzanine Finance as an Alternative to Debt and Equity Financing
• Players in the Market for Mezzanine Finance
• Typical Terms of Mezzanine Finance Transactions
• Using Mezzanine Finance in Leveraged Acquisitions
• Case Study

Evaluation and Termination of the Seminar