Arvopaperistaminen

Arvopaperistaminen, also known as securitization, is a financial process where illiquid assets are pooled together and then repackaged into tradable securities. These securities are then sold to investors. The primary goal of securitization is to transform assets that are not easily bought or sold into marketable financial instruments. Common examples of assets that can be securitized include mortgages, auto loans, credit card receivables, and student loans.

The process typically begins with a financial institution, such as a bank, originating a large number of loans. These loans are then transferred to a special purpose vehicle (SPV), which is an entity created specifically for this transaction. The SPV purchases the pool of assets from the originator and then issues securities backed by the cash flows generated by these assets. These securities are often structured into different tranches, each with varying levels of risk and return. Investors can then purchase these tranches based on their risk appetite.

Securitization offers several benefits. For originators, it provides a way to raise capital, transfer risk off their balance sheets, and free up funds for new lending. For investors, it offers access to diversified income streams and investment opportunities that might otherwise be unavailable. However, securitization also carries risks, particularly related to the quality of the underlying assets and the complexity of the structures involved. Poorly underwritten loans or inadequate risk assessment can lead to significant losses for investors, as seen in some financial crises.