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To: John Pitera who wrote (109612)8/13/2018 3:59:46 AM
From: Robohogs  Respond to of 218415
 
This may be how this financing works in US (pretty common) and risk is next to nothing due to collateral pool (assuming perfection) but not sure how it works in Turkey with its sovereign celing at BB. The collateral packages at some banks may allow breeching the ceiling but not by much. A big babk like DB will use IRB though so who knows what data they used to teach the model. Not going to be a ton of debt though. The risk ratings will limit quantities with higher capital charges. Spreads should be higher than Bob described too. But again, asset financings maybe not. And the assets may not be there.

Jon