In Bloomberg News, Patricia Lynch Discusses Whole Business Securitizations
In Bloomberg News, structured finance partner Patricia Lynch discusses the increasing use of whole business securitizations to access less expensive funding given the strong investor demand for yield.
The Bloomberg News story, published on Jan. 27, looks closely at consumer companies that have executed whole business securitizations in recent months.
“From the standpoint of companies that do WBS, by doing a securitization instead of a conventional secured credit facility, they tend to get much cheaper pricing than they would otherwise,” Patricia said. “Because all of the revenue-generating assets collateralize these bonds in a special purpose vehicle, investors are much more comfortable with the credit risk of lending to these vehicles.”