Hey It says on this page that securitisation can be used to allow equity release assets (I am assuming these are the equity release policies) to meet the requirement for MA, I'm not clear as to how this works? Thanks
Hi Equity release assets are not normally allowed in matching adjustment portfolios due to the uncertainty involved in their future casfhlows. Equity release assets can be securitised into a number of tranches. After this process, the senior tranches would share the characteristics of a fixed interest security, and so would be elligible for including in a matching adjustment portfolio. Thanks Amit
