Securitization

Knowledge Center

12manage is looking for students. Info





Description of Securitization. Explanation.

 

Definition Securitization. Description.


Securitization is a financial technique that pools assets together by turning future cash flows into tradable, bond-like securities. Creating such asset-backed securities became a lucrative business for financial firms during the 1990s.


Benefits of Securitization:

  • Businesses ("Issuers") can immediately realize the value of a cash-producing asset and get instant access to money for which they would otherwise have to wait months or years, and they can shed some of the risk that their expected revenue will not materialize.

  • By selling securitized loans, investment banks are able to finance their customers without tying up large amounts of capital.

  • Investors can hold a new sort of asset, less risky than unsecured bonds, giving them the risk-reducing benefit of diversification.

However there is always a risk that the future cash flows underlying the securities may flow earlier or later than promised, or not at all.


Special Interest Group - Securitization


Special Interest Group (29 members)


Forum - Securitization  

Here you will find interesting and educational discussions.


  Financial Engineering. Tools
WHAT IS FINANCIAL ENGINEERING? Financial Engineering (FE) i...
 
 
 
 
Hot Synthetic Securities (1 reactions)
WHAT IS A SYNTHETIC SECURITY? A synthetic security is a cas...
 
 
 
 
  Quotes on Securitization. Quotations
Hi, do you know of a remarkable, humorous quote by a famous ...
 
 
 
 

Best Practices - Securitization

Here you will find the most valuable ideas.



Expert Tips - Securitization

Here you will find high-quality advice from experts.



Resources - Securitization

Here you will find powerpoint presentations, micro-learning videos and further information sources.


 

News about Securitization


     
 

Videos about Securitization


     
 

Presentations about Securitization


     
 

Books about Securitization


     
 

More about Securitization


     

Compare also: Intangible Assets

Special Interest Group Leader

You here? Sign up for free


 
 

Return to Management Hub: Finance & Investing


More on Management  |  Return to Management Dictionary  | 

 

This ends our Securitization summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2019 12manage - The Executive Fast Track. V15.1 - Last updated: 15-10-2019. All names of their owners.