LEGAL ENGINEERING TECHNIQUES
Legal engineering techniques come in two forms, risk management and balance sheet management, both of which are not necessarily two facets of a single policy.
The objective of asset / liability management is to immunize the balance sheet against market risks, thanks to an adequate hedging and financing policy.
The technical balance sheet management , on improving the balance sheet structure whose purpose is to individualize a set of risks ( liability management ) or a set of receivables ( asset management ). These are respectively defeasance and securitization .
This management is often accompanied by the use of derivative products which are intended to hedge risks.
These legal engineering techniques involve in particular concepts of accounting law, since it is a balance sheet structure, the question being whether the transaction does not in fact constitute a balance sheet layout that does not actually modify the balance sheet. risks and may be requalified. A rigorous analysis must be made taking into account in particular the potential impact of the law of receivership on the separation of assets.
Credit derivatives and securitization: a promising marriage, Carron, Alain; Tanguy, Eric, Banque, n ° 625, 01/05/2001, pp. 30-33
Accounting and legal and financial engineering, Georges Berlioz; Revue de Droit Comptable, 1996, pp. 103-122
Review the risk management policy , Chabaneix, Denis, Banque, n ° 560, 01/06/1995, p.35
Business real estate, Conference-debate of April 7, 1994 on the real estate crisis, market consensus: nature, limit and future ; Rouger, Michel; Malaquin, Philippe; Lefevre, Philippe; Berlioz, Georges; Lacourte, Thierry; Robic, Jean-Louis, La Gazette du Palais, n ° 324, 20/11/1994, pp 20-29
10 techniques to boost results , Feitz, Anne, Option Finance, n ° 316, 07/18/1994, pp 14-18
How banks clean their balance sheets, Feitz, Anne, Option Finance, n ° 310, 06/06/1994, pp. 14-18
Legal and financial engineering put to the test of the crisis, Georges Berlioz, Droit et Patrimoine, Forum, April 1993
International association of financial engineers
Kissane, CormacKBC’s synthetic CLO [collateralized loan obligation] breathes life into Europe asset-backed market, International Financial Law Review (IFLR), 08/01/2000, pp. 14-16