Securitization, the theoretically safe financing tool that reached record volumes in 2006 was then facing a world financial crisis, a crisis with securitization as one of its main factors, leading to the essential dilemma; whether securitization can still be regarded as an efficient financial tool or rather as a risky destructive tool. While detailing and discussing the World Financial Crisis and the role that securitization played in this financial disaster, it was clear that these structures collapsed not due to a genuine weakness in securitization but rather due to the fact that securitization was misused and mismanaged, through the creation of its structures over risky assets (subprime mortgages) that under stressed market conditions eventually collapsed. In addition, to prove this point of view, we have elaborated the Lebanese Auto loans Securitization Transaction (LAST), that was able to succeed, through all the political and economical downturns that Lebanon witnessed from January 2005 when this transaction started till June 2009 when it was ended, with Investors receiving all their interest amounts and all their invested principal amounts.
LinksShow item in Library Catalogue
All open access Theses and Dissertations are made available in Digital Gate, under the terms of the Creative commons Attribution-Noncommercial-No Derivative Works 4.0