Sovcombank talked about asset securitization

Any asset that generates a stable cash flow can be securitized, Leonid Belchenko, director of Sovcombank's securitization department, said at the Expert RA forum on structural products. He provided an overview of the market beyond mortgages and classic consumer retail.

"The devil is in the details: each asset and product has its own characteristics, and proper accounting helps to structure an economically profitable, balanced transaction," Belchenko said.

He listed alternative asset classes that are promising and already used in securitization transactions: retail assets (POS loans, car loans, credit cards, loans to MFIs, distressed portfolios), corporate cash flows (accounts receivable, leasing, factoring), large loans (including syndicated loans). It is also possible to securitize an entire business, Belchenko added. He paid special attention to two planned securitization transactions — the MFO loan portfolio and the retail NPL portfolio, which Sovcombank is implementing jointly with the Svoi fintech group.

"Sovcombank closes both transactions under one roof — as the organizer, the settlement agent and the bank of the collateral account — this gives the investor one window of responsibility from placement to maintenance," Belchenko emphasized.

In turn, the CEO of the investment company Svoi Kapital (Svoi fintech group) Evgeny Aslamov added that two deals are currently in the works: securitization of the ID Collect NPL portfolio and securitization of the MoneyMan microloan portfolio, for a total placement amount of about 3 billion rubles. "We consider securitization to be a promising area for diversifying sources of liabilities and accelerating business growth," Aslamov said. He expressed the hope that a methodology for rating NPL securitization transactions will be developed in the near future: having a rating adds confidence to private investors in the paper.