Securitisatsioonis

Securitisatsioonis, also known as securitization, is a financial process through which certain types of assets are pooled together and transformed into marketable securities. This process allows financial institutions to convert illiquid assets—such as loans, mortgages, or receivables—into liquid financial instruments that can be sold to investors.

The securitization process typically involves several key steps. First, an originator, such as a bank or financial institution, aggregaes qualifying assets. These assets are then transferred to a special purpose vehicle (SPV), a legally independent entity created for this purpose. The SPV issues securities backed by the pool of assets, which are sold to investors. The cash flows generated by the underlying assets are used to pay interest and principal on the securities.

Securitization offers several benefits. It provides liquidity to originators, enabling them to fund additional lending activities. It also allows investors to diversify their portfolios and access asset classes that may otherwise be difficult to invest in directly. Additionally, securitization can improve risk management by transferring credit risk from originators to investors.

However, securitization also involves risks, such as credit risk, prepayment risk, and complexity in evaluating the quality of the underlying assets. The 2007–2008 financial crisis highlighted some of these risks, particularly those associated with mortgage-backed securities, leading to increased regulatory scrutiny and calls for transparency and risk management in securitization practices.

Overall, securitisation is an important tool in modern financial markets, facilitating liquidity, risk distribution, and access to capital, while necessitating careful oversight to mitigate associated risks.