Securitization, and structured finance generally, is a critical capital-raising tool for many companies. Utilizing one or more bankruptcy-remote special purpose entities to legally isolate the credit risk of quality, securitizable assets from the credit risk of the company itself can help raise capital at more favorable rates, on better terms, and from a broader investor base than may otherwise be available absent a securitization structure. In addition to legal isolation, structured finance generally employs credit enhancements and structural features that may provide additional opportunities to help finance a company facing a distressed situation.
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