The Somei Platform will fill the gap by providing long-term debt to companies in need while offering its lenders limited downside via
over-collateralized positions and modest upside through profit sharing.
HLSS' assets are predominately mortgage servicing advances that, along with the related servicing rights, are
over-collateralized 30 times by residential real estate.
They were AAA-rated and
over-collateralized, backed by insurance and supported by the dealers.
Be careful not to allow one lender to become unduly
over-collateralized by taking a lien against multiple stores where the financed amount is not warranted, as this will limit your ability to obtain capital to finance growth initiatives by offering an additional store as collateral.
For instance, these policies could potentially bring about a second subprime mortgage crisis in Korea because of the
over-collateralized, over-amplified, and high-risk securities.
Banks and corporations that invested in these complex,
over-collateralized "AA rated mortgages later found out that they were worth nothing," she continued.Aa
Lenders are a highly fragmented group and
over-collateralized (indicating lenders will not take much of a gamble on the company).
These securities are normally
over-collateralized so that income from the mortgages is sufficient to ensure timely payment of interest and principal to the security holders.
Moreover, should SRC look to unwind the structure as the notes issued through it are either prepaid or mature, there are structural elements that will result in the structure becoming
over-collateralized and by extension weakening unencumbered asset coverage until the final dollar of Trust debt is repaid.
By contrast, products that advance funds for benefit payments from the provider's general account leave the portfolio
over-collateralized. That is, the value of the plan's assets are greater than the book value of the contract.
