Securitisation in ship financing

What form does securitisation take in ship financing?

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Hi @EiriniXyla :sunny:
Securitization in shipping can be undertaken through a SPV (Special Purpose Vehicle) which is set up to issue securities to fund the acquisition of assets, in our case, vessels, loans or charter party receivables (leases). The SPV owns these particular assets and any proceeds then generated by the assets are paid back to the investors as a return.
We might see such financing structures more often in shipping if we consider that traditional sources of ship finance have dried up in view of the increased regulatory capital requirements for banks.
I hope this helps :slight_smile:

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Thank you!

Definitely helped :slight_smile:

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