Fitch releases primer on SFF securitizations
10.10.2024 – Articles
As banks respond to Basel III requirements, the securitization of subscription finance facilities (SFF) opens up a low risk underlying asset class to a wider set of investors.
Fitch Ratings has published a primer on subscription finance facility (SFF) securitizations, in response to questions from investors and other market participants against growing interest in these structures.
According to Greg Fayvilevich, managing director, Fitch Ratings: “The securitization of subscription finance facilities could help a broader set of investors access a low-risk underlying asset class on a more-diversified, term basis. Nevertheless, transaction-specific structural features will play a pivotal role in overall risk, with a clear trade-off between the manager’s flexibility to manage the collateral pool and the credit quality of the securitization.