TITLE

Concerns to Weigh In Securitizations

PUB. DATE
November 2002
SOURCE
Financial Executive;Nov2002, Vol. 18 Issue 8, p11
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article focuses on the use of asset-based securitization, which is an off-balance sheet accounting method. Some chief financial officers (CFO) are using securitization to improve cash flow and as a short-term, low-cost alternative to traditional financing. REL Consultancy Group account director Lloyd Gold comments on securitizations which are under the scrutiny of regulators and investors. CFO should consider downgraded credit ratings that can increase interest costs, regulatory focus on special-purpose entities, and hidden costs such as insurance and bank fees when making a decision about asset-backed financing.
ACCESSION #
26822202

 

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