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.