Structured Finance Training and Securitization

Posted By : imarticuslearning on 2022-04-28   13:01:41    India
  Structured Finance Training

Description

Securitization is taking an illiquid asset and converting it into security. This is done through financial engineering techniques, and it is a key part of structured finance training. By securitizing assets, investors can gain access to a broader range of investments, and this helps to improve liquidity in the marketplace. In addition, securitization can offer investors several benefits, including higher returns and reduced risk.

In a more straightforward form, it is pooling together similar assets and selling them off as securities. The purpose of securitizing assets is to spread the risk associated with them.

The process of securitization involves the following steps:

-Identification of assets: The first step is to identify the assets to be securitized. These could be loans, credit card receivables, leases, etc.

-Pooling of assets: The next step is to pool these assets together. This is done to diversify the risk associated with each asset.

-Creation of securities: Once the assets have been pooled together, they are then sold off as securities. The most common securities created through securitization are mortgage-backed securities and asset-backed securities.




About Author

imarticuslearning Mumbai India
Imarticus Learning is a technology driven educational institute that has immense expertise in transforming careers across industries such as financial services, analytics and AI, business analysis and core technology.

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