PT  - JOURNAL ARTICLE
AU  - J. Paul Forrester
TI  - Unstranding “Stranded Cost” Securitizations
AID  - 10.3905/jsf.2008.706231
DP  - 2008 Apr 30
TA  - The Journal of Structured Finance
PG  - 33--38
VI  - 14
IP  - 1
4099  - https://pm-research.com/content/14/1/33.short
4100  - https://pm-research.com/content/14/1/33.full
AB  - Stranded cost securitization techniques were originally developed to compensate U.S. electric utilities for regulatory assets rendered obsolete and uneconomic by deregulation. These techniques permitted an affected utility to recover stranded costs in rates charged to customers and to issue bonds backed by such charges. Today, stranded cost securitization techniques are finding new applications in the financing of mandatory pollution control equipment and other similar expenditures, for catastrophic storm reconstruction expenditures and, as proposed by the author, possibly for “synthetic” carbon emission reduction for new fossil-fueled power plants or purchases.TOPICS: Security analysis and valuation, fixed income and structured finance