Course Guide

Asset Backed Securities Course

Participants structure, price, and analyze securities backed by real-world cash flows - grappling with risk, return, and creditworthiness - in our Asset-Backed Securities Course.

Asset Backed Securities Course Overview

The Asset-Backed Securities Course places participants in the role of securitization analysts and structurers within a financial institution. Their task: to transform pools of assets - such as auto loans, credit card receivables, or mortgages - into investment-grade securities with distinct tranches, risk profiles, and yields.

Created by structured finance professionals and academic experts, this course introduces participants to the practical complexities of securitization. They must assess asset quality, model cash flows, allocate risk, and present a structure to both investors and credit committees.

The course bridges finance theory with real-world structuring, regulation, and investor psychology, giving participants exposure to one of the most consequential innovations in capital markets.

Asset Backed Securities Course Concepts

The course gives participants a deep dive into structured finance, covering:

  • Securitization Process: From asset pool selection to security issuance
  • Tranching and Credit Enhancement: Senior/subordinate structures, overcollateralization, excess spread, and reserve accounts
  • Cash Flow Modeling: Amortization, prepayment risk, and default scenarios
  • ABS Types: Auto loans, credit cards, residential mortgages, student loans
  • Yield and Pricing: IRR by tranche, credit spreads, time to maturity
  • Credit Ratings and Risk Transfer: Rating agency criteria and regulatory capital treatment
  • Investor Considerations: Risk appetite, return targets, and portfolio fit

Gameflow

Asset-Backed Securities Workflow Diagram for Gameflow

What Participants Do

In this course, participants take on the role of a securitization team preparing an ABS issuance. Across multiple course stages, they will:

  • Analyze an asset pool’s credit quality, default history, and cash flow characteristics
  • Structure the security into tranches with varying levels of risk and return
  • Apply credit enhancement techniques to improve ratings
  • Run scenarios for prepayment, delinquency, and macroeconomic stress
  • Price each tranche based on investor appetite and risk profiles
  • Prepare and present the structure to internal stakeholders or external investors

What Participants Learn

The course brings structured finance concepts to life, helping participants:

  • Understand how asset-backed securities are created, priced, and sold
  • Analyze risk and return trade-offs in tranche structuring
  • Model repayment, default, and prepayment behavior
  • Appreciate investor needs and regulatory constraints in securitized products
  • Communicate complex financial structures in clear, persuasive language
  • Reflect on the role of securitization in expanding credit access—and financial crises

Why This Asset Backed Securities Course Works

ABS and structured products can seem opaque - this course makes them concrete, strategic, and practical.

By tasking participants with making real structuring decisions under data and time pressure, the course helps them internalize the tensions between investor yield, credit protection, and structural complexity. It also surfaces ethical, regulatory, and systemic risk considerations embedded in these instruments.

Perfect for advanced finance, structured products, or capital markets courses, this course delivers the clarity and confidence participants need to navigate the world of securitization.

Frequently Asked Questions