Rated securitization is one of Northern Arc’s most popular structured products, for large and small client partners alike. In addition to structuring and arranging a securitization transaction, Northern Arc retains skin in the game by routinely investing in subordinated tranches of the securitization deal. Northern Arc manages the end-to-end structuring and execution of such transactions including selection of pool, designing an optimal structure for clients and investors, documentation, rating and legal processes. We also arrange for investors who invest in the securities, issued the Special Purpose Vehicle (SPV) set up for such transactions. Northern Arc structures, arranges and invests in both single originator and multi-originator securitization (MOSECR) deals. The underlying for securitisation can be retail as well as whole-sale loans.
Multi-Originator Securitisation (MOSECR) - Under this structure, loan pools originated by various client partners are bundled together and sold to an SPV which then issues securities backed by these loans. The pools provided by each client partner are bound together by a common enhancement in addition to pool specific enhancement also being provided by each of them. This is a unique product offering by Northern Arc. We have advised various global financial institution on this product as well.