Explain the role of parties involved in the process of securitisation of debt.

The role of parties involved in the process of securitisation of debt is as under: Originator : This is the entity that requires the financing and hence is the driver of the deal. Typically the Originator owns the assets or cash flows around which the transaction is structured. SPV (Special Purpose Vehicle) : An SPV is typically used in structured transaction for ensuring bankruptcy remoteness from the Originator. The SPV is the issuer of securities or the entity through which the financing is channeled. Typically the ownership of the cash flows or assets around which the transaction is structured is transferred from the Originator to the SPV at the time of execution of the transaction. The SPV is typically a marginally capitalized entity with narrowly defined purposes and activities and usually has independent trustees/directors. Investors : The investors are the providers of funds and could be individuals or institutional investors like banks, financial institutions, mutual funds, provident funds, pension funds, insurance companies, etc. Obligor(s) : The Obligor is the Originator's debtor. The amount outstanding from the Obligor is the asset that is transferred to the SPV. The credit standing of the Obligor(s) is of paramount importance in a structured finance transaction. Guarantor/Credit Enhancement Provider/Insurer : These are entities that provide protection to the Investor for the finance provided and the returns thereon against identified risks. Typically, on the happening of pre-identified events, affecting the underlying assets or cash flows or the payment ability of the Obligors, these entities pay moneys, which are passed on, to the Investor. Rating Agency : Since structured finance deals are generally complex with intricate payment structures and legal mechanisms, rating of the transaction by an independent qualified rating agency plays an important role in attracting Investors.