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NOT NULL CONSTRAINT -    Ensures that a column cannot have a null value. DEFAULT CONSTRAINT -    Provides a default value for a column when none is specified  UNIQUE CONSTRAINT -   Ensures that all values in columns are different  CHECK CONSTRAINT -   Makes sure that all values in a column satisfy certain criteria  PRIMARY KEY CONSTRAINT -   Used to uniquely identify a row in the table  FOREIGN KEY CONSTRAINT -   Used to ensure referential integrity of the data  Primary Key - is used uniquely to identify each row in a table . It can consist of one or more columns on a table . When Multiple columns are used on a table it is called composite key.  Foreign Key - Foreign key is a column or columns that references a column most often primary key of another table . The purpose of foreign key is to maintain referential integrity of the data. Pg admin  Data base - training - right click on training - query click  Always add semi colen to run the query  Int - integer  varchar - variable charact
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Debt securitisation

Debt securitisation 

It is the process of converting mortgage loans (illiquid asset) together
(pooling) with future receivables into negotiable securities (liquid asset) or assignable debt (bond) is called "securitisation" . The securitisation process involves packaging designated pool of mortgages and receivable and selling these packages to various investors in the form of security (bond) which are collaterised by the underlying assets and their associated income streams.

Example -If bank is running short of cash 

What would bank do ?

*Mortgage loan 

*Go to RBI 

*Debt securitisation 


Process of Debt Securitisation 

  • When someone take loan from bank they give property which is title kept in locker , the title has value and is intangible asset , to make it marketable they convert this illiquid asset into liquid asset . 
  • They don’t have any market . To convert this into liquid asset , they will follow debt securitisation , they will form SPV which is a trust appoint merchant bankers 
  • These liquid securities will convert into bonds , because they know the process of SEBI , we will also go to CRA(Credit Rating Agency) to make it attractive .
  •  They will rate the bond AAA, AA, A . Investor will subscribe it according to the rate , It will go from SPV to bank then after subscribing .
  • Illiquid is title of property and liquid asset is bond which is converted by Special Purpose Vehicle (SPV).

AAA- LOW INTEREST 

AA- MODERATE 

A- HIGH  

When Loan is repaid by the borrower , the bank has to release the asset , The bond is a certificate which has a base called mortgage asset , that certificate is divided into numbers . Bank do pooling of assets , based on the age , they will try to filter out 20% of the life and will issue of 8 years is there.There is proper calculation done .




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