Future direction and growth of securitisation in the capital markets 13 appendix 15 bibliography 16 references 18 executive summary this report outlines the introduction and development of securitisation, looking at its origins in the american markets and its introduction and subsequent growth in the australian market. Zimbabwe’s mineral securitisation plan launched posted by 3smedia on may 28, 2014 in news the zimbabwean government has initiated its securitisation of minerals by directing diamond firms to deposit their gems with the reserve bank of zimbabwe in order to secure external loans.
Securitization according to shimeles (2009), securitisation is a transaction that involves a potential borrower pledging future hard-currency receivables as collateral to a special purpose entity that issues the debt. From a theoretical view point, these analyses may constitutes mere moral and ethical criticisms, and therefore of no relevance to securitization theory,104 however, giving these concepts the deserved relevance in securitization studies, taking into consideration norms, historic and cultural contexts, would create a room for a wider applicability of the securitization theory.
Zimbabwe’s decade long economic melt-down from 1999 to 2009, and political crisis which surrounded the 2008 elections, resulted in massive emigration of both professional and non-professional zimbabweans to neighbouring countries and abroad securitization according to shimeles (2009), securitisation is a transaction that involves a. Synthetic securitization helps issuers exploit price differences between the acquired (and often illiquid) assets and the price investors are willing to pay for them (if diversified in a greater pool of assets) growth of securitization the landscape of securitization has changed dramatically in the last decade. This legal study identifies through a case-study of zimbabwe the range of essential legal reforms an emerging market should implement to establish financial infrastructure that enables the structuring of securitization transactions and the prevention and management of risks – such as those highlighted by the 2007 global financial crisis – that can arise from securitization transactions.
Securitisation in zimbabwe essay securitization is a structured finance process that distributes risk by aggregating assets in a pool ,often by selling assets to a special purpose entity, then issuing new securities backed by the assets and their cash flows.
Since zimbabwe was a british colony, they have adopted some english habits (lewis) the history and religion make zimbabwe culture different in fact, this country borders with botswana, mozambique, south africa, and zambia the original inhabitants of zimbabwe were pushed out by migrating bantu tribes.
In the usa securitisation of residential mortgages is the mother of all securitizations and is in the form of residential mortgage-backed securities (rmbs) which generally pass through securities or bonds based on cash flows from residential home loans, as opposed to commercial real estate loans.