In recent years, financial engineering has developed new ways of financing deals based primarily on the capacity of the operations to generate sufficient cash for the repayment of loans or bonds. The business of structured finance has then become an interesting business area for non-financial companies, investment and commercial banks and consultants. In terms of volumes, it shows figures easily comparable to other, more traditional, sources of funding.
This book provides the reader with an analysis of the characteristics of structured finance deals – asset-backed securitization, project finance, structured leasing and leveraged acquisitions – together with updated data on the current state of the international financial markets for these operations.
Structured Finance
Stefano Caselli ´ Stefano Gatti (Editors)
Structured Finance Techniques, Products and Market
With 52 Figures and 28 Tables
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Professor Stefano Caselli Professor Stefano Gatti IEMIF Bocconi University Via Sarfatti 25 20136 Milan Italy
[email protected] [email protected]unibocconi.it
Cataloging-in-Publication Data Library of Congress Control Number: 2005927233
ISBN 3-540-25311-4 Springer Berlin Heidelberg New York This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer-Verlag. Violations are liable for prosecution under the German Copyright Law. Springer is a part of Springer Science + Business Media springeronline.com ° Springer Berlin ´ Heidelberg 2005 Printed in Germany The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Hardcover-Design: Erich Kirchner, Heidelberg SPIN 11407614
43/3153-5 4 3 2 1 0 ± Printed on acid-free paper
Foreword Stefano Caselli and Stefano Gatti “Giordano Dell’Amore Institute of Financial Markets and Financial Intermediaries – “L. Bocconi” University, Milan Structured finance is a business area that encompasses a wide range of transactions. In this work, the authors opted to include securitization, project finance, leasing (as a transaction representative of asset based finance) and acquisition finance activities conducted by utilizing a deal design based on a strong debt component (essentially LBOs in all their contractual variations). This perimeter of analysis does not lend itself to meticulous theoretical or empirical debate. The evidence which emerges from observation of the managerial practices of international and domestic intermediaries that compete in this business (which are described in this work) substantially confirm this choice. Though defining the boundaries of structured finance is not particularly problematic, the same can not be said of the position taken by Italian financial intermediaries in this business area. In actual fact, neither in national nor international literature can systematic studies be found which deal with both positioning of actors on the market (and in this context positioning of d