Investment grade vehicles for optimal portfolio diversification

Our securitization team raises capital for Textron Financial divisions by isolating pools from seller bankruptcy risk with predictable cash flows of like assets and then issuing claims on those assets in the form of fixed-income securities. These securities, which can be issued as short, medium- or long-term notes, are then sold to qualified institutional buyers.

Our securitization technology segments and redistributes risk (asset credit, liquidity, interest rate, operational, and bankruptcy risks) to multiple parties. Typically, as the seller or servicer, we retain the first loss (equity) position. Our securitizations receive off-balance sheet treatment for financial accounting purposes and are executed in both the asset-backed commercial paper market and the term 144a market.