Course Category

Asset Backed Securities - Online

This introductory course guides students through the evolution of asset securitization, which results in new products for investors and expanded sources of funding and risk transfer opportunities for issuers. It shows how an asset-backed security is constructed, rated by the credit agencies, traded, and valued. The course also explores the different ABS market segments, from the large, established segments like automobile loans, to emerging and sub-prime market segments. The course concludes with a look at current trends in the industry.

Please note that this is a curriculum of individual course modules. You will need to pass each module exam in order to qualify for a certificate of completion.

This is an asynchronous eLearning program that can be accessed 24/7 from any internet enabled computer.

• Define asset-backed securities (ABSs).
• List the advantages for issuers of and investors in ABSs.
• Identify the different roles played by issuers, investors, and dealers in the ABS market.
• Recognize the differences between pass-through and pay-through trust structures.
• Describe the role of a Special Purpose Vehicle in structuring ABSs.
• Define the most common types of credit enhancements.
• Identify the elements by which rating agencies evaluate and monitor credit worthiness.
• Identify the differences between the MBS and ABS markets.
• Identify the structure, sources of income and risks of credit card ABSs.
• Describe how auto loan ABSs are structured.
• Recognize the structure, risks and credit enhancements of Home Equity Loan (HEL) ABSs.
• Describe how Collateralized Debt Obligations (CDO) work.
• Recognize the role of spreads and benchmarks in pricing ABSs.
• Distinguish the different factors that impact ABS spreads.
• Identify the relative pricing of different ABS sectors and the fixed-income market.
• Recognize potential new collateral assets for ABSs.
• Recognize ways current ABS products are likely to expand in the future.
• Identify how derivatives are being used within ABSs.
• Explain the opportunities for ABS growth in Europe, Asia, and Latin America.