Securitization Technology:Securitization Technology:Applications to Other IndustriesApplications to Other Industries

OverviewOverview

Historically, Primarily Used in Finance IndustryHistorically, Primarily Used in Finance Industry Potential Applications to Other IndustriesPotential Applications to Other Industries Vertical DisintegrationVertical Disintegration

PanelistsPanelists

F.H. AhlbornF.H. Ahlborn Chris DiAngeloChris DiAngelo Howard HillerHoward Hiller Michael KnopfMichael Knopf Shanker MerchantShanker Merchant Wayne OlsonWayne Olson John PerkinsJohn Perkins

Insurance & Utility IndustriesInsurance & Utility Industries

Capital NeedsCapital Needs Application of Structured Finance TechnologyApplication of Structured Finance Technology

Key DriversKey Drivers Return on EquityReturn on Equity Operating EarningsOperating Earnings Growth in EPSGrowth in EPS Investment Income MarginsInvestment Income Margins ““Off-Balance Sheet” for Ratings PurposesOff-Balance Sheet” for Ratings Purposes Better Credit RatingBetter Credit Rating Regulatory IncentivesRegulatory Incentives Acceleration of Monetization of Hard or Embedded Acceleration of Monetization of Hard or Embedded

AssetsAssets Prompt Recovery of Deferred BalancesPrompt Recovery of Deferred Balances

Securitization Product Overview - Securitization Product Overview - UtilitiesUtilities

Stranded Cost/Transition BondsStranded Cost/Transition Bonds Energy Recovery BondsEnergy Recovery Bonds Environmental BondsEnvironmental Bonds Storm Cost SecuritizationStorm Cost Securitization Volumetric Production PaymentsVolumetric Production Payments Receivables FinancingReceivables Financing

Securitization Product Overview - Securitization Product Overview - InsuranceInsurance

XXX/AXXX SecuritizationXXX/AXXX Securitization Annuity & Life Product SecuritizationAnnuity & Life Product Securitization Closed Block SecuritizationClosed Block Securitization EVA SecuritizationEVA Securitization Mortality Indexed BondsMortality Indexed Bonds Insurance Product SecuritizationInsurance Product Securitization

Structuring IssuesStructuring Issues

Credit EnhancementCredit EnhancementViability of Senior-Sub StructuresViability of Senior-Sub Structures

Credit EnhancementCredit Enhancement

Monoline ExperienceMonoline ExperienceEvolution of Monoline Involvement in New Evolution of Monoline Involvement in New

IndustriesIndustries

ReactionsReactions

Market ReactionMarket ReactionRating Agency ReactionRating Agency Reaction Investor ConcernsInvestor ConcernsRegulatory ConcernsRegulatory Concerns

Looking Forward…Looking Forward…

Applications to Other IndustriesApplications to Other Industries

Industries Securitizing Intellectual PropertyIndustries Securitizing Intellectual Property

FilmFilm PharmaceuticalsPharmaceuticals ApparelApparel MusicMusic FranchisingFranchising