To date, it appears that no securitisation of receivables, whether domestic or cross-border, has been accomplished in Russia due to a series of unresolved legal issues. These legal issues are common to the securitisation of various types of receivables, including the securitisation of lease and mortgage receivables. This article examines the legal and structural issues underlying a successful securitisation and then briefly addresses such issues as they apply in Russia.
Securitisation is a process whereby a pool of financial assets with similar characteristics is used to back securities, which either pass through, or pay, interest and principal. Generally speaking, the moneys received from payments on the assets in the pool are used as the source of funds for the payment of interest on (and the retirement of) the securities.
