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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER33/02-19]
PIB 4 Credit Risk
PIB 4 Part 3 — CRDOM
PIB 4.14 Securitisation
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Notices
Financial Markets Tribunal
Archive

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Dec 9 2012 onwards

PIB 4.14.2

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The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

To view past versions of this module in PDF format, please visit the Archive.

For the purposes of this chapter and PIB App4, "securitisation" includes Traditional SecuritisationG , Synthetic SecuritisationG and Re-securitisationG , as defined below:

(a) A Traditional SecuritisationG is a structure where the cash flow from an underlying pool of ExposuresG is used to service at least two different stratified risk positions or tranches reflecting different degrees of Credit RiskG . Payments to the investors depend upon the performance of the specified underlying ExposuresG , as opposed to being derived from an obligation of the entity originating those ExposuresG . A Traditional SecuritisationG will generally assume the movement of assets off balance sheet.
(b) A Synthetic SecuritisationG is a structure with at least two different stratified risk positions or tranches that reflect different degrees of Credit RiskG where Credit RiskG of an underlying pool of ExposuresG is transferred, in whole or in part, through the use of funded (e.g. credit-linked notesG ) or unfunded (e.g. credit default swaps) Credit DerivativesG or guarantees that serve to hedge the Credit RiskG of the portfolio. Accordingly, the investors' potential risk is dependent upon the performance of the underlying pool. A Synthetic SecuritisationG may or may not involve the removal of assets off balance sheet.
(c) A Re-securitisationG ExposureG is a securitisation ExposureG in which the associated underlying pool of ExposuresG is tranched and at least one of the underlying ExposuresG is a securitisation ExposureG . In addition, an ExposureG to one or more Re-securitisationG ExposuresG is a Re-securitisationG ExposureG .
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]