Posts

LeoGlossary: Securitization

avatar of @leoglossary
55
leoglossary
1 min read

The pooling of various forms of contractual debt and selling their cash flows to investors as securities. They can be bonds, collateral debt obligations (CDOs), and pass-through securities.

Securitization offers opportunities for investors and frees up capital for originators, both of which promote liquidity in the market.

These are Asset-Backed Securities (ABS).

Posted Using LeoFinance Beta