the following thread is in on securitisation
Securitisation is the process of pooling and repackaging of homogenous
illiquid financial assets into marketable securities that can be sold to investors.
Securitisation has emerged as an important means of financing in recent
times.
A typical securitisation transaction consists of the following steps:
1. creation of a special purpose vehicle to hold the financial assets
underlying the securities;
2. sale of the financial assets by the originator or holder of the assets to the
special purpose vehicle, which will hold the assets and realize the assets;
3. issuance of securities by the SPV, to investors, against the financial
assets held by it.
Securitisation is the process of pooling and repackaging of homogenous
illiquid financial assets into marketable securities that can be sold to investors.
Securitisation has emerged as an important means of financing in recent
times.
A typical securitisation transaction consists of the following steps:
1. creation of a special purpose vehicle to hold the financial assets
underlying the securities;
2. sale of the financial assets by the originator or holder of the assets to the
special purpose vehicle, which will hold the assets and realize the assets;
3. issuance of securities by the SPV, to investors, against the financial
assets held by it.