Securitization is the financial process of pooling various types of assets—such as loans, mortgages, credit card debt, or other receivables—and converting them into securities that can be sold to investors. These securities are backed by the underlying assets and can be bought and sold on financial markets, providing liquidity to the original asset holders and creating investment opportunities for buyers.
Securitization is the financial process of pooling various types of assets—such as loans, mortgages, credit card debt, or other receivables—and converting them into securities that can be sold to investors. These securities are backed by the underlying assets and can be bought and sold on financial markets, providing liquidity to the original asset holders and creating investment opportunities for buyers.
The most typical types of certificates used to securitise such assets are:
The securitisation of risky assets creates two main benefits, among others;
Securitisation offers a variety of significant advantages when compared
to traditional investment vehicles.
Major benefits include increased flexibility, reduced cost and improved
operational efficiency.
Structure your certificates in a flexible way in terms of seed money, tenor,
investment universe, etc.