securitisation
Securitisation is a structured finance technique that pools financial assets with similar risk characteristics and repackages them into securities sold to investors. The assets are transferred to a special purpose vehicle (SPV), which issues securities backed by the cash flows from the pool. The originator may retain servicing rights, while the SPV provides legal isolation of the assets from the originator’s balance sheet.
The process typically involves pooling eligible assets, transferring them via a true sale to the SPV, and
Common forms include mortgage-backed securities (RMBS), asset-backed securities (ABS), collateralized debt obligations (CDOs), and collateralized loan
Benefits include improved liquidity, funding diversification, and risk transfer from the originator to a broader investor