Publication
Oct 2021
Trade receivables securitisations: Background to trade receivables securitisation
Securitisation of various cash flow assets began in the 1980s. Trade receivables, while not the first asset class to be securitised, date back approximately 30 years. Trade receivables securitisations allow companies to raise capital by selling, on a revolving basis, a selection of receivables to a legally separate, bankruptcy-remote special purpose entity (SPE). The SPE, with the conveyance of the acquired receivables, can issue collateralised notes with the issuance proceeds flowing back to the original selling company.