Wednesday, May 6, 2009


Securitization is financing technique allowing the holders of financial assets to reconstruct those assets into securities, which are then sold to outside investors. It can also be described as:
* the creation of liquid assets out of illiquid assets;
* the technique of rising funds through the agency of securities;
* the carefully structured process whereby loans and other income producing assets are packaged, underwritten and sold in the form of asset-backed securities, which are typically secured by the underlying pool of assets.

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