Analyse and position your credit carefully and develop terms that match it - use this to maximise liquidity 

Create optionality by running a multi-track
process and make products and markets
compete as well as financiers within those
markets

Prepare to put in the necessary time and
resource to open up new markets
and new financiers

Community CPS in late 2009 initiated a re-evaluation of its capital and funding strategy

Developed the funding strategy in collaboration with management including objectively scoping the spectrum of funding alternatives

Ran a two stage tender process and advised on lead manager appointments

Managed structuring, documentation and external constituents including legal counsel, AOFM and rating agencies

Negotiated all commercial terms and conditions

Funding strategy proposed to, and ratified by, the Board in April 2010

Extensive preparatory work prior to approaching external parties including:

Competitive tender process across all active financiers/arrangers

RFP process underpinned by detailed term sheets

Approach sensitive to Community CPS’ long term relationship with its existing financier

Best in class outcome on price and structure achieved for both Warehouse Facility and Term RMBS

Perception that AAA nature of credit and market liquidity in securitisation results in tightly defined outcomes proved inaccurate

Structure and related documentation
are complex and outcomes are wide
and diverse

Lead managers use documentation complexity to drive inefficiencies into the structure (in their and investors favour)

An arms-length competitive process
and our expertise empowered the
issuer to “make” the transaction and
to mandate leads on fully developed
commercial terms