Securitisation of mezzanine capital in Germany

Arbeitspapier

A recent trend in the German Asset Backed Securities (ABS) market is the securitisation of subordinated loans and profit participation agreements (PPAs) granted to medium-sized enterprises (MEs). This paper provides an overview of this growing market and analyses the benefits of such transactions for the portfolio companies as well as originators and potential investors. Simulations of ten recent transactions indicate that despite of relatively low interest rates charged on obligors, originators and investors can earn attractive returns at fairly low risk. In particular, the junior tranches of these securitisations exhibit quite attractive risk-return profiles.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CoFE Discussion Paper ; No. 07/09

Classification and Topics

• Classification: Wirtschaft ; General Financial Markets: General (includes Measurement and Data) ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies
• Subject: securitisation ; middle market transactions ; mezzanine loans ; medium-sized enterprises ; junior tranche

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Franke, Günter ; Hein, Julia
• Event: Veröffentlichung
• (who): University of Konstanz, Center of Finance and Econometrics (CoFE)
• (where): Konstanz
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/32185
• URN: urn:nbn:de:bsz:352-opus-116616
• Last update: 10.03.2025, 11:43 AM CET