Asset-Backed Securities. Belenus Securities PLC

Essay by GuyMannensUniversity, Master'sA+, October 2002

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1. What are the main features of the underlying assets?

The underlying assets is a pool of 427 fixed (71%) - and floating (29%) -rate loans which are generally secured by diverse commercial real estate property types with an unpaid principal balance of Ffr 1.5 billion.

Features :

Loan diversity : principal balances ranges from Ffr 34.000 to Ffr 213 million with an weighted average amount owed of Ffr 3.6 million.

Property Type : The pool is fairly diversified.

44% Offices / 25% Retail / 12% Hotels / 7% Multifamily / 11% Industrial & Warehouse

Geographic Concentration : Most of the assets mainly concentrated in Paris and the suburbs.

Most French portfolios of the same size are believed to have a significant concentration in Paris, the subordination levels are not affected.

Collateral Type is diversified :

+/- 81% of loans by principal balance are secured by a mortgage lien on real property,

9.4% are secured by a pledge of share from a commercial real estate company

4.3% are secured by a third-party guaranty or pledge of business assets

Maturity Dates are diversified :

Ranging from 2 months to 191 months

Real estate quality ranged from A (excellent) through C (Average) to E (Poor) :

0,2 % A / 54,6% B / 34,7% C / 12,6% D

Location : Properties located in France : 32% in Paris : 33% in the Paris Suburbs / 35% in the regions

Offices : usually well located

Retail : The centres are anchored by supermarkets.

Hotels : In Canes and Paris

Multifamily : Within Paris and the suburbs, a mix of eastern and western locations.

2. What can you find about the originator of the commercial mortgages ?

Originator : Banque SOFAL.

SOFAL is a subsidiary of Union Industrielle de Credit (UIC), a real estate...