Future Flow Securitization (refer to lecture notes, assigned/attached reading and outside research as needed). (25 points) a. Why would a bank want to securitize remittance flows? b. Name 2 ways the securitization of remittances might aid economic development or improve the lives of people in the recipient country. c. Why would you want to create the SPV offshore in a place like the Cayman Islands when creating a future flow securitization? d. What is the principal form of credit enhancement used in a future flow securitization? e. Are there any additional credit enhancements youve seen in the case examples we have covered in class? f. If you were an investor, why might you choose a credit card merchant voucher securitization over a remittance securitization? g. Refer to the hydrocarbon royalty case we discussed in class: What makes hydrocarbon royalties such a predictable cash flow well suited to securitize? Name 2 things that concerned you when evaluating the investment.

Use this reading link:

file:///Users/test/Downloads/Future%20Flow%20-%20S&P%202011%20(1).pdf