Charlotte GAUCHON
Credit enhancement mechanisms and asset/liability management in securitisation: an in-depth approach
By Charlotte GAUCHON20 July 2025Securitisation is a sophisticated financial technique that goes well beyond the simple pooling of assets. For such an operation to succeed and inspire investor confidence, it must be accompanied by robust mechanisms for managing risk and securing financial flows. This is where asset/liability management and credit enhancement techniques come into play, as they are essential tools for transforming a portfolio of receivables into an attractive and secure investment product. To understand the objectives and advantages of securitisation, we need to look at these instruments, which are the real driving force behind it. Structuring these complex financial products requires specialised legal expertise, particularly when it comes to navigating the dense regulatory framework. The support of a law firm with expertise in this area is therefore a prerequisite for the success of these operations. Forward financial instruments and risk transfer A securitisation vehicle (SPV) is not simply a passive holder of securities,...
Failure to obtain a home loan: repayment of sums paid and penalties
Mortgages, Credit and consumer lawThe purchase of a property is often conditional on obtaining finance. French law has introduced a major protective mechanism for non-professional buyers: the condition precedent that the property loan must be obtained. This clause, incorporated into the promise to sell, renders the contract null and void if the loan is not granted. This is a...Condition precedent for obtaining a property loan: issues and case law
Mortgages, Credit and consumer lawBuying a property is a decisive step, financed in the vast majority of cases by a loan. To protect the non-professional buyer, the legislator has introduced an essential security mechanism: the condition precedent that the loan must be obtained. This provision links the validity of the sale to the granting of finance...Definitions and scope of mortgage credit: the legal guide
Mortgages, Credit and consumer lawMortgages are at the heart of most of life's projects, whether it's the purchase of a primary residence or a rental investment. However, the legal framework surrounding it is so dense and complex that borrowers are often surprised. Far from being a simple loan contract, it is...Digital assets and NFT: are they miscellaneous assets? Regulatory issues
Brokerage, Banking and securities lawThe emergence of cryptocurrencies and NFTs has shaken up the investment landscape, creating new opportunities but also a real legal headache. These new types of assets are struggling to find their place in regulatory frameworks designed long before their existence. One question is particularly acute: can they...Penalties applicable to intermediaries and financial investment advisers
Brokerage, Banking and securities lawThe atypical nature of the property investment sector attracts many savers looking for a return. However, this world is strictly regulated to protect investors. Intermediaries in miscellaneous goods (IBDs) and financial investment advisers (CIFs) operating in this market are subject to strict regulations....Financial investment adviser (FIA) and miscellaneous assets: legal framework and responsibilities
Brokerage, Banking and securities lawThe Financial Investment Adviser (FIA) is a key player in wealth management and investment advice. Their role is not confined to traditional financial instruments; it also extends to advising on transactions in miscellaneous assets, those atypical investments (wine, works of art, containers, etc.) whose value can be...Intermediaries in various goods: standard or simplified regime and detailed obligations
Brokerage, Banking and securities lawInvestments in atypical assets such as wine, works of art or manuscripts are attracting a growing number of savers and entrepreneurs. However, the legal framework surrounding these transactions is dense and often misunderstood. Intermediaries in various goods (IBDs), the key players in this market, are subject to strict regulations...Miscellaneous property: definition, scope and transactions subject to regulation
Brokerage, Banking and securities lawThe world of so-called "atypical" investments, such as wine, works of art, manuscripts or even diamonds, attracts many investors with its often high promised returns. However, this attraction can mask significant risks, especially in the absence of a clear protective framework. To address this issue, the law...Miscellaneous goods intermediaries: the complete guide to AMF regulations
Brokerage, Banking and securities lawAtypical investments, ranging from wine to works of art to containers, represent a complex and often opaque investment universe for the uninitiated. At the heart of this ecosystem is the intermediary in miscellaneous goods (IBD), a player whose activity is strictly regulated by the Autorité des marchés financiers...Obligation to debt and contribution to debt: keys to understanding matrimonial liabilities
Credit and consumer lawThe management of debts within a couple married under the regime of legal community is a frequent source of questions and tensions, particularly in the event of separation. When a loan is taken out, who has to pay it back? And from which assets can the creditor, such as a bank, claim payment?Repayment of credit: the specificities of the systems of separation of property and universal community property
Credit and consumer lawChoosing a matrimonial property regime is a decisive step in a couple's life, with implications that go far beyond the possibility of divorce. Debt management, and in particular the repayment of loans taken out by either spouse, is directly affected by this initial choice. If you...Joint accounts and seizures: what are the risks for repaying your loans as a couple?
Credit and consumer lawFor many couples, opening a joint account is a practical way of managing day-to-day expenses. However, this ease of management can turn into a source of major legal risks when one of the joint account holders incurs a personal debt. The seizure of this account by a creditor raises a number of...Credit and community reduced to acquests: mastering article 1415 of the Civil Code
Credit and consumer lawWhen a couple is legally married, the taking out of a loan by only one of the spouses raises a fundamental question: what assets can be seized by the bank in the event of default? The answer is far from simple, and involves the joint, or even personal, assets of each spouse....Article 220 of the Civil Code: joint and several liability of spouses and repayment of household debts
Credit and consumer lawMarriage has legal consequences that often go beyond the personal sphere, particularly in financial terms. When a couple have difficulty honouring their commitments, the question of each person's responsibility for debts, and more particularly for loans, quickly becomes a source of concern...Cohabitation and civil union: understanding your credit repayment obligations
Credit and consumer lawThe legal status of a couple, whether they are cohabiting or in a civil solidarity pact (PACS), has a direct impact on their financial obligations, particularly when it comes to repaying credit. Contrary to popular belief, these two forms of union are not treated in the same way by the...Repayment of consumer credit between couples: a comprehensive legal guide
Credit and consumer lawTaking out a loan as a couple is a common practice, whether to finance a property project, buy a car or simply manage day-to-day expenses. However, behind this harmless act lies a legal complexity that is often misunderstood. The rules that determine who must repay the debt vary...Variable-rate loans and foreign currency loans: legal risks and borrower protection
Credit and consumer lawVariable-rate loans and foreign currency loans are often appealing because of their attractive initial terms. However, these financial instruments conceal complexities and risks that can turn a financing project into a financial trap. Their structure, which indexes the cost of borrowing on factors...Lombard year, anatocism and value dates: deciphering banking practices and their implications
Credit and consumer lawA bank loan contract is rarely a smooth ride. Behind the main clauses sometimes lie complex calculation mechanisms, the impact of which on the total cost of credit is often underestimated by the borrower. Anatocism, value dates, lombard year: these technical terms refer to banking practices that are sometimes...Loansharking: legal definition, rate calculation and criminal and civil penalties
Credit and consumer law, UsuryThe loan contract is a common act in the lives of individuals and businesses, but its remuneration is strictly regulated. Among the safeguards established by law, the prohibition of usurious lending is one of the oldest and most important. This is essential protection for borrowers,...TEG and TAEG: calculation, mandatory disclosure and penalties for rate errors
Credit and consumer law, Annual percentage rate of chargeThe Taux Effectif Global (TEG), and its equivalent for consumer credit, the Taux Annuel Effectif Global (TAEG), represent much more than just a percentage on a loan contract. It is the key indicator of the real cost of your financing, a central concept in the remuneration of the lender.
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