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.