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Role of the Trustee in Asset Securitization

Corporate & Institutional
Cleveland, Ohio, USA: Howard M. Metzenbaum U.S. Courthouse and post office - houses the Bankruptcy Court, the US Trustee and US Marshals - 201 Superior Avenue - architects Arnold W.Brunner and Daniel Chester French - Beaux-Arts architecture - photo by M.Torres

Asset securitization segregates the assets to be securitized from the business of the securitization’s sponsor (the Originator) by transferring them to a special purpose vehicle (SPV), often a trust. The trustee of the trust usually subcontracts the administration and servicing of the securitized assets back to a subsidiary of the originator of the asset pool or a third-party provider.