Sep 082021
 

In Luxembourg, the annual accounts of special purpose vehicles must be audited by one or more independent accountants (“Approved Auditors”). The originator is the entity that allocates assets or risks in a securitisation transaction. As a rule, it was the party (lender) that initially stored and securitized the receivables (loans). The obligations arising from such loans are therefore initially due to that undertaking before the transfer to SPV takes place. Occasionally, the initiator may be a third party who purchases the pool for the purpose of securitizing it; in this case, the author is also cited as a sponsor. Initiators include financial companies owned by major car manufacturers, other financial companies, commercial banks, mortgage companies, manufacturers, insurance companies and investment firms. As a result of the credit crunch caused by the mortgage subprime crisis, the U.S. market for bonds secured by securitized loans was very weak in 2008, with the exception of bonds backed by a state-backed agency. . . .

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