Is an eppf S.A. compartment bond a securitisation/ABS?

No. eppf compartment bonds are neither:

• tranched, i.e. there are no junior, senior or mezzanine tranches;
• portfolio of assets; nor
• subject to a payment waterfall.

The nature of eppf compartment bonds is full transparency which is achieved by a mere passing-through of the obligations which are mirrored in the Back-to-Back Business (as defined below). In addition, the guarantee allows direct recourse against the guarantor, which is not the case in a securitisation. The term securitisation vehicle which is used for eppf under the Securitisation Law is unfortunately misleading in this context, as not every securitisation vehicle must or does carry out securitisations.