2007_Subprime_Shorting-Home-Equity-Mezzanine-Tranches-1
2007_Subprime_Shorting-Home-Equity-Mezzanine-Tranches-1
2007_Subprime_Shorting-Home-Equity-Mezzanine-Tranches-1
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Footnote Exhibits - Page 0988<br />
Strictly private & confidential<br />
Business models of subprime lenders<br />
a Balance sheet lending<br />
-Pure<br />
a Whole-loan sales<br />
lending on the company's own book is very rare for major lenders<br />
- Newer lenders mostly rely on whole-loan sales to dispose loans<br />
- Established lenders often engage in whole-loan sales when they see opportunities<br />
- Whole-loans sold will most likely be securitized by the buyer<br />
N Securitization<br />
- Securitization are used for many purposes, the most common among them<br />
- Lower cost of funding<br />
- Raise leverage<br />
- Release regulatory capital<br />
- Managing risk<br />
I<br />
Deutsche Bank<br />
All numbers shown in this presentation are indicative and are based on a sample portfolio. Actual numbers will be<br />
different and will depend on the actual portfolios selected.<br />
64<br />
00<br />
00<br />
00
Change language