LOAN TO VALUE (LTV)

The amount of LTV awarded to an asset will factor various considerations such as

• the description of the asset
• the world market
• the financial strength of the asset
• the quality of the use of funds from monetization
• the criteria of the lender, trader, and/or funder

RECOURSE VS. NON-RECOURSE 

A monetization loan is typically a full recourse loan. The funds have to be paid back. 

It is true that a trade program can retire/pay off the monetization loan making the overall transaction non-recourse. But for the monetization bank's books... the quality of the use of funds has to support paying off the monetization loan on its own without any trading activities.