Over the last twenty-five years, securities and the securitisation of financial assets have become one of the most commonly used methodologies for financial debt management. The development of securitisation has been said to have contributed to the negative effects of the 2007 Global Financial Crisis and as a result, significant legal challenges have arisen with regard to managing this market.
DEFINE and DESCRIBE the process of securitisation and EXPLAIN the purpose for securitising financial assets. Brief MENTION should be made of the historical development of securitisation and the use of the ‘Special Purpose Vehicle’ in the securitisation process.
DISCUSS any issues that have arisen as a result of the massive securitisation of debt instruments in global financial markets and CITE examples of how governments have responded legislatively to these issues.