How do I learn securitization?

Follow one pool through the structure: collateral cash flows in, the waterfall pays seniors first, enhancement absorbs losses. When you can trace a dollar through a deal, the rest is variation. KomFi drills the mechanics with 2,192 structured-finance questions.

How do I prepare for a structured finance interview?

Be precise on tranching, credit enhancement types, OC/IC triggers, and prepayment metrics (CPR/ABS). The interview signal is whether the waterfall is intuitive to you yet — repetition gets it there.

What are asset-backed securities?

Bonds backed by pools of receivables — auto loans, credit cards, equipment leases — where investors are paid from pool cash flows through a tranched waterfall rather than by a single corporate borrower.

Free sample questions

1. Which vehicle was specifically created by the Tax Reform Act of 1986 for this asset class?
2. What is the most likely tax structure?
3. Given the real estate collateral, which tax vehicle is standard for this multi-class transaction?
4. In a two-step auto-loan securitization, the originator first… — What is the principal legal purpose of this ar
5. Under ASC 860, which condition must be met for a transfer of receivables from an originator to an ABS trust to
6. Why does it covenant NOT to incur additional debt?
7. Why can that legal isolation support cheaper funding than the originator's unsecured debt?
8. Why is 'Bankruptcy Remoteness' a core requirement for an ABS Special Purpose Entity (SPE)?
9. A credit card master trust is currently in its revolving per… — How are the principal collections allocated to
10. What is the required hard credit enhancement for the AAA class?
11. If Series 2025-1 has an invested amount of $2,500 million, what is its proportionate share of the total invest
12. If the pool has an 18.00% Monthly Payment Rate (MPR) and a $10,000,000,000 balance, how much additional financ
13. Which statement best reflects the relative value analysis?
14. If servicing is 1% and expected losses are 2.5%, what is the net spread improvement from using securitization?
15. Which metric suggests the auto ABS might offer better 'spread per unit of risk', and why?
16. A credit card master trust issues 'Series 2026-1' with a thr… — How is this principal cash flow utilized by th
17. Why is a REMIC election often preferred for transactions backed by residential or commercial mortgages compare
18. In a credit card master trust, the 'Discount Option' is exer… — How does this reclassification affect the trus
19. If the servicer exercises the call, what price must they pay for the outstanding bonds?
20. If a bond is currently trading at a significant discount to par (e.g., 85 cents), how does the exercise of thi
21. An investor is considering a premium-priced ABS bond with a… — How does the exercise of this call typically im
22. If an originator maintains separate bank accounts and books for its SPE, which legal risk is it primarily tryi
23. If a transfer of loans is recharacterized by a court as a 'secured loan' instead of a 'true sale', which risk
24. In a 'Two-Tier' structure, who is the second transfer of assets typically between?
25. What does 'substantive consolidation' refer to in the legal architecture of ABS?
26. What is the primary factor that courts look at to distinguish a 'True Sale' from a 'Disguised Financing'?
27. What is the primary objective of legal isolation in an Asset-Backed Securities (ABS) transaction?
28. What is the purpose of a 'Non-Consolidation Opinion' in an ABS deal?
29. What role does the 'True Sale Opinion' play in a securitization transaction?
30. Which characteristic is commonly required for an entity to be considered a 'bankruptcy-remote' SPE?