Trade Receivables Securitisations

November 2015 by

Securitisation of various cash flow assets began in the 1980s. Trade receivables, while not the fi rst asset class to be securitised, date back at least 25 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 fl owing back to the original selling company.

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