Do you want BuboFlash to help you learning these things? Or do you want to add or correct something? Click here to log in or create user.

Legal Identity of the Bond Issuer and its Legal Form
#fixed #income
Through the securitization process, the sponsor transfers the assets to the special legal entity to carry out some specific transaction or series of transactions. One of the key reasons for forming a special legal entity is bankruptcy remoteness. The transfer of assets by the sponsor is considered a legal sale; once the assets have been securitized, the sponsor no longer has ownership rights. Any party making claims following the bankruptcy of the sponsor would be unable to recover the assets or their proceeds. As a result, the special legal entity’s ability to pay interest and repay the principal should remain intact even if the sponsor were to fail—hence the reason why the special legal entity is also called a bankruptcy-remote vehicle.
If you want to change selection, open original toplevel document below and click on "Move attachment"


statusnot read reprioritisations
last reprioritisation on suggested re-reading day
started reading on finished reading on



Do you want to join discussion? Click here to log in or create user.