LeoGlossary: Securitization
8 mo
0 Min Read
60 words
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).
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