Securitization transactions do not always perform according to plan. Economic difficulties of orignators and/or servicers as well as weaker than expected portfolio performance are risks arrangers and investors have to deal with.
One possibility to mitigate such risks is to involve a back-up servicer for the portfolio, which is able to take over once things turn sour, or even better before that happens. Particularly portfolio and debtor management have to be ensured at all times. Additionally specific reportings about the portfolio and all actions being taken by the back-up servicer are pivotal.
The TXS securitization specialists have teamed up with a leading global player when it comes to back-up servicing. Together we will develop a fully integrated back-up servicing solution. The pilot project has been already mandated for so as a consequence, we will be able to bring our ideas to life right away. Both partners contribute their core competencies. This will be fun but much more important it will deliver the best solution for our clients.