A Study on the Use of Asset-Backed Securities as an Alternative Debt

A STUDY ON THE USE OF ASSET-BACKED SECURITIES AS AN ALTERNATIVE DEBT FINANCING: AN EXAMINATION ON THE VIABILITY OF REAL ESTATE SECURITIZATION IN MALAYSIA

Professor Dr. Rosalan Ali Ph.D. (Finance)"

Faculty of Business Management

University of Technology MARA

40450 Shah Alam, Selangor

ABSTRACT

The main objectives of the study are to overview on the mechanics of real estate Asset-Backed Securities (ABS) as a form of debt financing and measure the ability of the original owners of real estate ABS to reduce their debt obligations and enhance their eaming capacities in the Malaysian capital market. All eight real estate ABS issues are covered since its introduction in 2002 to 2005, and their performances are measured based on their selected financial ratios for one year. before, during the year and one year after their issuance of ABS. Generally, the study meets the objective of the study with all 8 originators show satisfactorily reductions in their debt obligations and enhancements of their book value per share.

Keywords: asset-backed securities, securitization, debt obligations, earning capacities, book value per share