The "Bond Characters Table" offers a comprehensive approach to
differentiate the most common natures, characteristics and structures found in
Asset-Backed Securities/Bonds simply by highlighting the respective characters in each of
the relevant category. By doing so, the overall view of a bond can be clearly outlined in
terms of offers, credit quality and enhancement, risks, payment expectations, targeted
investors and investment options. By means of this instant prospective analysis for ABS as
structured accordingly, it would be more precise and useful as to determine what you
should look for by constructing your own expectations from an investment or simply using
it as a check list, cross reference or comparative analysis for various types of bond
investment.
Characteristics
& Structures of Asset-Backed Securities/Bonds in “Characters Table” Format
Issuers |
Interest
Payments |
Principal
Payments |
Credit Quality |
Credit
Enhancement |
Risks |
Investor Types |
Others |
Banks |
Monthly |
Monthly |
Issuer’s
Guarantee |
Overcollateralization |
Interest
Rate Risk |
General |
“Over-the-
Counter” Secondary Market |
Financial
Institutions |
Quarterly |
Quarterly |
Insurance |
Oversubscription |
Early
Amortization Risk |
MPF/CPF |
Open
Market |
Governments |
Semi-annually |
Semi-annually |
Gov’t.
Guarantee |
Third-party
or Parental Guarantee |
Default
Risk |
Pension
Funds |
Short-term
Maturity |
Property
Developers |
Annually |
Annually |
Third-party
Guarantee |
Subordination |
Prepayment |
Hedge
Funds |
Intermediate
term Maturity |
Land
Owners |
Tranche |
Tranche |
Investment
graded Stocks & Bonds |
Excess
Servicing |
Foreign
Exchange |
Institutional |
Long-term
Maturity |
|
Fixed |
Bullet |
BBB+ |
Excess
Spread |
High |
|
Average
Life |
|
Floating |
Fixed |
AA |
Reserve
Fund |
Medium |
|
Jumbo
Pools |
|
Pro-rata |
Pro-rata |
AAA |
Turboing |
Low |
|
Safekeeping |
|
Guaranteed |
Guaranteed |
Fully
Asset Backed |
Pool
Insurance |
Event |
|
Callable |
|
Generated
from Assets |
Compound
Interest-bearing |
Partially
Asset Backed |
Letter
of Credit |
Extension |
|
Strips |
|
Generated
from External Sources |
Sequential |
Profit
Sharing |
Cash
Collateral Account |
Call |
|
Interest
Only |
|
|
|
100%
Profit Sharing |
Collateral
Invested Amount |
|
|
Principal
Only |
|
|
|
Investment-
grade Baa/BBB or higher |
Other
Investment Assets |
|
|
TAC |
|
|
|
|
Acquisition
of Receivables |
|
|
PAC |
