Receivables of one or more banks are – combined into a package (bundle, pool, special asset, portfolio), – the credit risk is separated by means of a credit derivative, and – the credit risk is sold to a special purpose entity; the credit receivable, however, remains – in the
Difference from true sale securitization – still on bank balance sheet. – See assets, illiquid, buy-and-hold practice, claw-back clause, credit linked notes, defeasance, diamond thesis, credit derivative, credit card fiasco, originate-to-distribute strategy, PayGreen initiative, reintermediation, repatriation option, kickback effect, single master liquidity conduit, true sale securitization, securitization structure. – Cf. Deutsche Bundesbank Monthly Report of April 2004, p. 29, Deutsche Bundesbank Monthly Report of March 2006, p. 57 (clear sample calculations), ECB Monthly Report of February 2008, p. 92 et seq. (diagram; explanations of special forms of synthetic securitization; overviews).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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