1. Please provide a 150-200 word essay plan for the following question: ‘Critically examine the proposition that the growth in loan sales and securitisation was responsible for the recent financial crisis.’
1. Provide a definition of loan sales and introduce type of loan sales contracts: Participations and assignments 2. Provide a definition of securitisation
3. The risks of loan sales and securitisation to investors Main section:
1. Current markets of loan sales and securitisation
2. The reason of banks and other Financial Institutions (FIs) sell loans and asset securitisation 3. Provide the factors that affects loan sales growth and securitisation 4. The role/responsibilities of loan sales and securitisation during global financial crisis 5. Loan sales and securitisation figures before and after global financial crisis 6. Opportunities and challenges to both banks, FIs and investors in loan sales and securitisation after global financial crisis 7. Future trends in loan sales and securitisation
1. Summarise the role/responsibilities of loan sales and securitisation during global financial crisis 2. Summarise the reasons of loan sales and securitisation, opportunities and challenges in loan sales and securitisation and the future trends.
2. Please review the following article in 200-250 words: Altman, E. I., and A. Saunders, (1998) ‘Credit risk measurement: Developments over the last 20 years’, Journal of Banking and Finance, Vol.21, pp.1721-1742.
Altman and Saunders’s peer reviewed journal article has been reviewed. The article is called “Credit risk measurement: Developments over the last 20 years”. The main objective of this article is to describe the approaches of credit risk measurement that are developed by different researchers during the past 20 years. Then, Altman and Saunders are carrying out their new approach, which may suitable for loans and bonds for risk measurement....
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