The `packaging' of an income stream from selected assets and issuing of securities to investors backed by those assets. Securitisation enables relatively illiquid instruments (eg. mortgages) to be converted into marketable securities with active secondary markets. (See also Mortgage-backed Certificates and National Mortgage Market Corporation).
Bundling and sale of asset-backed securities.
The creation of debt securities with backed by cash flows or assets not normally used to secure debt, with no recourse to the borrower.... more on: Securitisation
Securing the cash flows associated with insurance risk. Securitised insurance risk enables entities which may not be insurance companies to participate in these cash flows
A key product area and an important financing technique used to convert cash generating assets into marketable securities for sale to investors. The objective of securitisation is to separate business risk from the risk of sold assets. This enables investors to assess the credit quality and the cash flow of the pool of assets rather than looking to the business risk.
Securitisation is the process of financing a pool of similar but unrelated financial assets (usually loans or other debt instruments) by issuing to investor's security interests representing claims against the cash flow and other economic benefits generated by the pool of assets.
The packaging of selected assets into tradeable securities which are issued to investors. These securities in turn provide the investors with an income stream backed by the underlying assets.
turning a pool of diverse assets such as various home loans into a bond or other security which investors can buy and trade.
When assets that generate a cash flow are packaged into a security that can be marketed, for example, in the form of bonds.
converting an asset such as a loan into a marketable commodity by turning it into securities. The most popular form of Securitisation involves mortgages, which are pooled and sold, often in unitised form, enabling the lender to reliquefy the asset. Any asset that generates an income stream can be securitised - eg, mortgages, car loans, credit-card receivables.
The packaging of debt or other receivables into the form of a tradable security.
The process of taking a pool of diverse assets such as different home loans and converting them into a tradable security such a bond which investors can then purchase and trade.
a means of raising finance secured on identifiable and predictable cash flows derived from a particular set of assets.
the packaging of assets (normally debt of some description) into securities. These may be higher- yielding and more freely tradable than the unpackaged assets. Securitising production revenues has become increasingly popular among commodity producers over the past few years. Electricity utilities have also started securitising their retail revenue.
The conversion of assets into tradeable securities.
Asset securitisation is the process of converting a pool of illiquid assets, such as residential mortgages, into tradeable securities.
The process of homogenizing and packaging financial instruments into a new fungible one. Acquisition, classification, collater Frequently, these Special Purpose Vehicles serve as conduits or pass through organisations or corporations. In relation to securitisation, it means the entity that would hold the legal rights over the assets transferred by the originator.
The process of raising funds through the issuance of mortgage backed securities. Traditionally these bonds are very safe and hence institutional investors are more than willing to take up large volumns.
The process of making a loan into a tradable security by issuing a negotiable document encompassing the loan and selling it on.
The process of transforming financial obligations into tradable securities such as shares or bonds. Bonds backed by mortgages or credit card receivables are well-known examples.
Replacement of credits and other non-marketable financial assets provided by financial intermediaries with negotiable securities issued in the public capital market.
is a financing technique where the income stream of an asset is used to service the interest and principal repayments on the relevant debt instruments.
Is the packaging of cash flow producing assets into a marketable security, e.g. property, roads, bridges, etc. The process where mortgage backed securities (in the form of bonds) are sold directly into the capital markets. Investors in the bonds comprise of Superannuation funds as well as other major institutions.
Converting an asset such as a home loan into a marketable commodity by pooling & selling mortgages.
The conversion of selected assets and issuing of securities to investors into an income stream backed by those assets.
Technical terms describing the process of bundling a group of mortgages together such that they can be treated, for funding purposes, as a single entity and made available to prospective investors in mortgage debt. Through the late eighties UK mortgage debt was seen as a relatively attractive investment by many institutions, pension funds etc. Securitisation allowed both existing and new lenders to raise money in the money markets, lend it to domestic property purchasers and then sell the resulting group of mortgages on to other institutions. This is also known as "off balance sheet lending" since the debt does not form part of the lender's assets. This does not affect the terms and conditions of the original mortgage offer in any way.
This is a structured financing strategy where an entity pools its cash receipts and sells them to investors to achieve purpose off balance sheet financing. Technically this is not financing since the entity securitising its assets is not borrowing money but selling a stream of cash flows. Securitisation is a blend of structured finance and capital markets since it is typically accompanied by the setting up of Special Purpose Vehicles ( SPVs) or Special Purpose Entities ( SPEs).