Securitisation, the mechanism by which a company converts various assets on its balance sheet into marketable securities to issue to investors, is becoming an increasingly popular alternative capital market funding source. This is evident by the fact that annual term issuance volumes increased from R2,3 billion in 2000 to R41 billion in 2007. The total cumulative term issuance to date is R84 billion.

With these developments in mind, various participants in the industry got together in October 2005 and formed the SASF. The members comprise the major banks, lawyers and auditors as well as rating agencies, investors, originators and trustee companies.

The SASF has been modeled on similar forums in Asia, Australia, the USA and Europe.

The benefits of the work that will be done by SASF
The launch of the SASF is a positive step for the securitisation industry in South Africa, mainly because it is the first time that the industry participants and regulators in the country can interact through a more official structure.

Other benefits to be derived from the forum include industry standardisation and links with similar organisations around the world which allow the sharing of knowledge and experience, including shared experience of regulators in other jurisdictions.