Abstract
This chapter examines a case study in recent financial innovation. The Chargeurs securitization that took place in December 1998 was widely regarded as a breakthrough in the field of securitization, because of the unusual apparent riskiness of the underlying assets. This chapter explores the sources of risk in the Chargeurs securitization, examines how the securitization was achieved, and suggests conditions necessary to ensure that the securitization of assets is value creating.
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References
Merrill Lynch (1999). “Chargeurs and the Wool Industry,” Internal document.
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The study discussed in this chapter was written while the author was an Academic in Residence with Merrill Lynch in Paris. He is especially grateful to Michel Fleuriet, Chairman, Merrill Lynch France for many lively discussions, to Merrill Lynch Research who provided some of the material for this paper, and to Tanguy Boullet who originated the Chargeurs securitization. All views expressed in this paper are, however, the author’s, and should not be deemed to represent an opinion of Merrill Lynch or any of its officers or employees.
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© 2001 Springer Science+Business Media New York
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Hyafil, A. (2001). Chargeurs Wool: A Case Study in Securitization. In: Jacque, L.L., Vaaler, P.M. (eds) Financial Innovations and the Welfare of Nations. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-1623-1_14
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DOI: https://doi.org/10.1007/978-1-4615-1623-1_14
Publisher Name: Springer, Boston, MA
Print ISBN: 978-1-4613-5646-2
Online ISBN: 978-1-4615-1623-1
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