Rated and unrated private securitizations providing term financing, balance sheet relief, and servicing fee income for banks, credit unions, and specialty lenders.
Private securitizations offer depository institutions and specialty lenders a powerful tool for managing balance sheets, reducing funding costs, and generating ongoing fee income—without the expense and disclosure requirements of rated public ABS.
For banks and credit unions, private securitizations can reduce funding costs by 120-200 basis points compared to deposit funding while generating ongoing servicing revenue. For specialty lenders, private ABS provides term financing that reduces warehouse dependency and improves capital efficiency.
Funding Cost Arbitrage: A regional bank funding auto loans at 4.5% via retail deposits can securitize the same portfolio at 2.8-3.2% all-in cost (including servicing). This 120-150bps reduction flows directly to ROE while maintaining servicing relationships.
Servicing Fee Income: Banks retain 25-50bps annual servicing fees on securitized portfolios, creating recurring revenue without balance sheet risk. On a $300M securitization, this generates $750K-$1.5M annually.
Balance Sheet Relief: Securitization removes assets from the balance sheet, freeing regulatory capital for new originations. A $200M auto securitization can free $8-12M in Tier 1 capital depending on risk weighting.
Deposit Diversification: Reduces reliance on retail deposits and wholesale funding, improving asset-liability management and liquidity ratios.
QueensGiant advises on the economics, structure, institutional positioning, and execution of private securitizations. Our work can include loan-level analysis, transaction modeling, pricing and structural alternatives, market feedback, investor engagement, diligence coordination, negotiation, and closing support.
Private transactions require judgment across the assets, capital structure, investor return requirements, documentation, and execution environment. We work alongside management, counsel, servicers, rating agencies when applicable, and institutional investors to keep those workstreams aligned through execution.
Loan-level and portfolio analysis supporting transaction economics and institutional underwriting.
Evaluation of capital structure, economics, and investor return requirements in current market conditions.
Targeted engagement with institutional investors, informed by ongoing market dialogue and transaction-specific feedback.
Coordination of commercial terms, diligence, counterparties, and execution through closing.
Prime and near-prime auto loans, indirect dealer paper, lease residuals. Bank auto securitizations typically achieve 120-150bps cost reduction vs. deposit funding.
Personal loans, point-of-sale financing, marketplace lending portfolios. Structures include senior/subordinated and excess spread capture mechanisms.
Construction equipment, medical devices, technology hardware, renewable energy assets. Includes both lease and loan structures across diverse equipment types.
Small business loans, commercial real estate bridge loans, litigation finance, structured settlements, solar panel financing, and other esoteric collateral.
Cost Efficiency: Rating agency fees, legal costs, and ongoing surveillance can exceed $500K per transaction. Private securitizations eliminate these costs while still accessing institutional capital.
Speed to Market: Rating processes can take 8-12 weeks. Private transactions close in 6-8 weeks from mandate.
Structural Flexibility: Private buyers can accommodate non-standard collateral, concentrated portfolios, or performance triggers that rating agencies would not accept.
Confidentiality: No public disclosure of transaction terms, pricing, or portfolio characteristics. Critical for competitive positioning.
Schedule a confidential consultation to discuss how private ABS can reduce your funding costs and optimize your balance sheet.
Contact Us