Yep, i know that question. Its a matter of timing of the securitization.
But while we are on this topic, does anyone have a quick and easy tutorial on what happens in a securitization of receivables?
Like you sell your receivables, what happens to all your ratios? For some reason I keep struggling with this. If anyone has a link, that would be nice. thanks.
If you securitize A/R without consolidating the SPE, your A/R drop by the amount that you securitized), so A/R goes down...think of ratios that depend on A/R.
If you consolidate the SPE, then A/R does not change.
Also, you have another asset added, which is the investment in the SPE.
ok, not sure the best way to think of this, but it seems they are assuming that if the $2million of A/R securitization had not been securitized, your A/R would be $118. Thus, Cash = $137 - (118-111) = $130..
But, I thought the whole idea of A/R securitization is to collect the cash! So, the way I would do it is $137 + $2 - ($116-$111) = $134.
发表于 2011-7-13 16:10
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