Basel III and Asset Securitization

Table 1

Defining features of LQAs and HQAs; source: [5].

Feature	LQAs	HQAs
External information
External ratings	Low	High
Market data	Poor	Rich
Analysts' reports	Negative	Positive
Internal information
Credit risk	High	Low
Liquidity risk	High	Low
Securitization exposure	Not understood	Understood
Financial obligations	Not easily met	Easily met