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securitisation

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    1. (1) (subject to (2) and (3)) a process by which assets are sold to a bankruptcy-remote special purpose vehicle in return for immediate cash payment and that vehicle raises the immediate cash payment through the issue of debt securities in the form of tradable notes or commercial paper.
    2. (2) (180in 209MIPRU 4)110 a transaction or scheme whereby the credit risk associated with an exposure or pool of exposures is tranched having the following characteristics:
      1. (a) payments in the transaction or scheme are dependent upon the performance of the exposure or pool of exposures; and
      2. (b) the subordination of tranches determines the distribution of losses during the ongoing life of the transaction or scheme.
      [Note: article 4(36) of the Banking Consolidation Directive (Definitions)]180
    3. (3) [deleted]209180
    4. (4) (in FEES 4 Annex 16R Part 3, item J.3) has the same meaning as in article 2(1) of the Securitisation Regulation.180