Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/32185
Authors: 
Franke, Günter
Hein, Julia
Year of Publication: 
2007
Series/Report no.: 
Discussion paper series // Zentrum für Finanzen und Ökonometrie, Universität Konstanz 2007,09
Abstract: 
A recent trend in the German Asset Backed Securities (ABS) market is the securitisation of subordinated loans and profit participation agreements (PPAs) granted to medium-sized enterprises (MEs). This paper provides an overview of this growing market and analyses the benefits of such transactions for the portfolio companies as well as originators and potential investors. Simulations of ten recent transactions indicate that despite of relatively low interest rates charged on obligors, originators and investors can earn attractive returns at fairly low risk. In particular, the junior tranches of these securitisations exhibit quite attractive risk-return profiles.
Subjects: 
securitisation
middle market transactions
mezzanine loans
medium-sized enterprises
junior tranche
JEL: 
G10
G21
G24
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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