The QAHC regime seems a shinier, more flexible, version of the UK’s securitisation company regime. Serena Lee and Matthew Durward-Thomas (Akin Gump) consider how the two regimes interact.
UK securitisation company regime
The use of a note-issuing securitisation company within the TSCR 2006 (a ‘UKSV’) is now well established. In a typical securitisation the UKSV issues notes to investors to fund the acquisition of financial assets yielding reliable and predictable cash flows (such as mortgage lease trade and credit card receivables) from an originator. The notes are limited in recourse to and benefit from security over the underlying financial assets and are typically tranched into senior and junior classes. The eligibility conditions in the TSCR 2006 were crafted with these structures in mind. However given the recent shift from traditional bank lending towards credit funds and other non-bank lenders coupled with...
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The QAHC regime seems a shinier, more flexible, version of the UK’s securitisation company regime. Serena Lee and Matthew Durward-Thomas (Akin Gump) consider how the two regimes interact.
UK securitisation company regime
The use of a note-issuing securitisation company within the TSCR 2006 (a ‘UKSV’) is now well established. In a typical securitisation the UKSV issues notes to investors to fund the acquisition of financial assets yielding reliable and predictable cash flows (such as mortgage lease trade and credit card receivables) from an originator. The notes are limited in recourse to and benefit from security over the underlying financial assets and are typically tranched into senior and junior classes. The eligibility conditions in the TSCR 2006 were crafted with these structures in mind. However given the recent shift from traditional bank lending towards credit funds and other non-bank lenders coupled with...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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