Securitization Bootcamp - Learn by Doing a Live Deal w Excel Modeling
4 Days
·Cohort-based Course
’Must-have' skills for junior bankers, new investors, & FinTech operators. Structure, model (from scratch) & execute a simulated deal.
Securitization Bootcamp - Learn by Doing a Live Deal w Excel Modeling
4 Days
·Cohort-based Course
’Must-have' skills for junior bankers, new investors, & FinTech operators. Structure, model (from scratch) & execute a simulated deal.
Course overview
Why you should take this course
Securitization is an exciting & lucrative field, but can seem intimidating - especially if learning 'on-the-fly' at work or from a textbook.
The truth is – securitization is not difficult to learn. It’s just never properly taught. This course de-mystifies securitization & gives you 'hands-on' experience to accelerate your career.
In a simulated deal, we play the role of an Investor buying auto loans from a FinTech Lender. We need a +10% return - but find buying unlevered auto loans doesn't get us there!
Using securitization, we structure a deal that works for us (+10% IRR), bankers, & FinTech Lender!
Who this course is for
01
Securitization Banking Analysts: Gain "job-ready" practical skills critical to success. Build a comprehensive excel model from scratch.
02
New Investors: Generate outsized risk-adjusted returns - based on cash flows. Use securitization to structure a bespoke investment.
03
FinTech Operators: Raise non-dilutive capital using securitization. Gain an "inside view" of how securitization investors think.
What you’ll get out of this course
A deep understanding of securitization concepts, structure, & deal economics
- How to use securitization to boost returns, mitigate risk, & raise non-dilutive capital
- Anatomy of a securitization structure, process, & parties
- Using Bankruptcy Remote SPVs to mitigate counterparty risk
- Protecting your $ investment using credit enhancements & triggers
"Job-ready" practical skills needed to efficiently execute
- Perform static pool analysis; build custom loss assumption curves
- Project asset cash flows & loan amortization schedules.
- Calculate unlevered & levered IRRs,
- Break-Even Analysis, Return Sensitivity
- Term Sheet Review
Technical skills to build a securitization model from scratch in Excel
- Build a 'from-scratch' excel securitization model to deeply understand structure, economics, & return profiles
- Use model to audit Term Sheet's waterfall
- Create dynamic visualizations that "tell the story"
"An Inside View" from different vantage points
- Experience a lender-investor term sheet negotiation through our simulated deal
- Explore the vantage points of the Investor (ABS equity), the Banker (ABS Debt Provider), and the asset originator (FinTech Lender)
Securitization Bootcamp - Learn by Doing a Live Deal w Excel Modeling
Meet your instructor
Zach Bolster
I've worked in securitization since 2004 as a banker, investor, & capital markets consultant to FinTech Lenders. Over the years, I've trained interns, analysts, and "first-time securitizers". I love teaching securitization and I’m thrilled to host this course.
Investor Experience:
-Apollo (Managing Director- Alternative Investments Team);
-Waterfall (Principal Finance / FinTech Warehouse Lending).
Banking Experience:
Wells Fargo Resi Mortgage Team
Wachovia Consumer ABS Team
Issuer Experience:
GoodLeap Capital Markets Team
Consulting Experience:
Golden Sun Advisors LLC
Personal:
I live in Santa Monica with my two young kids and wife.
I'm co-founder and president of ChemoCars - a nonprofit that's provided over 25,000 free rides to cancer treatment.
I'm passionate about helping people and working to solve important problems.
Be the first to know about upcoming cohorts
Securitization Bootcamp - Learn by Doing a Live Deal w Excel Modeling
Course syllabus
01
The Challenge: Can investing auto loans provide a 10% return?
- We assume the role of an analyst at a buy-side firm that has a 10% return hurdle.
- Our boss connects us with a banker pitching us auto loans.
- We learn basics of auto loans, overview of the non-bank lending companies that originate of auto loans.
- Use excel to calc the monthly loan payment & amortization schedule.
- IRR from sched cash flows = coupon
02
Banker proposes Securitization Leverage to Boost Returns. Is it a good deal?
- Explanation of levered vs. unlevered returns
- Banker offers us securitization debt to boost levered returns
- Overview of ABS Debt vs. ABS Equity (Resid)
- Why does a banker want to lend to a BK Remote SPV?
- Banker sends Initial Term Sheet. We review and model cash flow waterfall.
- Calculate residual cash flows
- Analysis Resid IRR, MOIC, ongoing leverage
03
How can we change the structure to our benefit?
- Why are the returns on our Resid so bad?
- What is Turbo amortization?
- How can we change structure to our benefit?
- Crafting a counter-proposal to banker
- Banker's counter to our counter!
- Introduction to Securitization Triggers
- Analyzing historical loan performance using static pools
- Creating assumptions curves (e.g. default, prepay, recovery)
04
Time to get real! Projecting cash flows reflecting performance curves (default, prepay, recovery)
- Review updated term sheet and structure. Update model accordingly
- Project cash flows that reflect our custom performance assumptions
- Pass loss-adjusted cash flows through model's latest structural waterfall
- Calculate triggers and compliance tests
- Update analysis of Resid's return profile
05
Can this deal be saved?
- We research comparable transactions to validate pricing
- Although there is no perfect comp, we get several indications that we are not getting a good deal
- Show results to banker and demand better pricing
- Banker compares comps vs. our trade and explains nuances between deals
- Banker provides "best and final"
06
Summarizing The Deal and Fielding Questions
- Update model to reflect banker's "best and final" offer.
- We summarize transaction to boss and convey base case returns on our investment - the auto loan Resid
- Boss requests i) break-even returns; ii) upside returns
- We calculate bankers "write-down scenario" - at the loss level that impairs the bankers' ABS Debt
Course schedule
4-6 hours per week
Mondays, Tuesdays & Thursdays
Class is comprised of 3 classes that are 1.5-2 hours long. A 4th class will be optional to cover student Q&A and deep dives.
Learning is better with cohorts
Active hands-on learning
This course builds on live workshops and hands-on projects
Interactive and project-based
You’ll be interacting with other learners through breakout rooms and project teams
Learn with a cohort of peers
Join a community of like-minded people who want to learn and grow alongside you
Frequently Asked Questions
Be the first to know about upcoming cohorts