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This question by itself is less a quant question but it has impact on the quantitative model to use.

In 2006 CEBS gudilines we find a definition similar to this: Specialised Lending (SP) is a sub-class of corporate lending. The primary source of repayment is the income generated by the asset.

We can think of a huge mall being built. An SPV is set-up, loans are issued and the rent of the mall pays the debt.

What I am not sure about: in practice, are such deals usually tranched? Such that there is a senior tranche (less interest, less risk) and junior tranches? If yes then how does this differ to securitization? Does it?

Is there a good reference where I can read about the tranching of SP?

As said before this has impact on the quant model. Thank you!

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