Securitisation: Difference between revisions

Revision as of 17:38, 13 March 2019

1.

The process of converting non-tradable assets into tradable securities.

This is often undertaken through a securitisation special purpose vehicle.

The credit risk of the assets is divided into tranches, and payments to the investors are dependent on the performance of the assets.

When a special purpose vehicle is used, the assets are transferred to the special purpose vehicle, which then issues securities.

2.

The tradable securities created by the securitisation process.

3.

The trend for larger non-financial companies to use less bank lending facilities and instead to issue their own securities direct to the markets.

Revision as of 11:33, 22 August 2017 (view source) imported>Doug Williamson (Link with Whole business securitisation page.) ← Older edit		Revision as of 17:38, 13 March 2019 (view source) imported>Doug Williamson (Expand 3rd definition.) Newer edit →
Line 18:		Line 18:
	3.		3.

	The trend for ~~large~~ companies to use less bank lending facilities and instead to issue their own securities direct to the markets.		The trend for larger non-financial companies to use less bank lending facilities and instead to issue their own securities direct to the markets.