BonelliErede, a leading law firm, commissioned a White Paper to provide a comprehensive overview of structured finance transactions, with a specific focus on securitization operations.

This document offers an in-depth analysis of both theoretical and practical aspects of such operations, presenting a diachronic exposition that traces the historical evolution and technical innovation. The aim is to support professionals in interpreting current and future dynamics in structured finance.

Structured Finance and Securitization Challenges

What is Structured Finance? Structured finance plays a fundamental role in the modern financial landscape, providing advanced mechanisms for optimizing risk management and accessing new sources of liquidity. Securitization transactions are tools for transforming credits and other assets into negotiable securities, enabling effective diversification and significant improvements in financial liquidity. However, these transactions are subject to regulatory challenges and operational risks, requiring rigorous and detailed analysis to fully understand their economic and regulatory implications, the structural dynamics of the securitization process, and the use of dedicated corporate vehicles (SPVs).

JEME’s Contribution

The analysis was based on detailed research of secondary sources, ensuring a thorough and documented work. A team of four operational resources, under the direction of a project manager, developed the document in Italian, organizing it into distinct sections:

1. The first part provides a historical overview of structured finance. It then examines the main types of transactions, such as leveraged buy-outs (LBO), different structured finance products, and project finance, before focusing in-depth on securitization. The parties involved, the structure of the transactions, and the applicable regulations are illustrated.
2. A case study of a recent securitization transaction was presented, applying the analyzed theories within a real and operational context.

JEME’s Impact

The White Paper developed by JEME contributed to an extensive analysis based on concrete data, significantly contributing to the existing literature on the subject. The document offers a detailed sector overview, integrating theoretical and regulatory elements with practical applications and relevant case studies.

The presentation of the study, which took place during a conference at the Milan office of BonelliErede, enhanced the skills of the JEME team, creating opportunities for future collaborations and the development of new projects.