Meeting ESMA Standards

We assess every deal for key indicators to make sure it meets current investors' demands for simplicity, transparency and consistency. These requirements are fundamental to asset backed securities as the industry moves towards standards set by the European Securities and Markets Authority. Our analysis includes:

Servicing and enforcement risk

  • Voting and enforcement rights
  • Documentation disclosure and legal review
  • Alignment of interests
  • Fiduciary and contractual responsibilities
  • Transparency to investors
  • Transparency of pricing
  • Recoverability of assets

Collateral risk

  • Nature of the assets
  • Performance history
  • Payment status and historical
    default rates
  • Consistency of rules for asset
    selection
  • Asset transfer and security
  • Provision of initial and ongoing data

Structural risk

  • Cash flows
  • Currency and interest rate asset and liability mismatches
  • Payment priorities

Monitoring standards

Bond structuring follows a systematic approach and we maintain those standards throughout the lifecycle of the bonds. In summary, this means that the segregated assets producing the yield are pledged in favour of a security trustee, which is part of a London law firm that's more than 200 years old. The Security Trustee provides fiduciary oversight and is a key contact point for both investors and noteholders for every bond.

Programmes are developed with a bankruptcy remote issuing platform established under UK law solely for the purpose of issuing debt securities. The securities issuance is part of an approved debt issuance programme.