securitisations
Securitisations are financial processes through which pools of assets, such as loans or receivables, are transformed into marketable securities. This process allows originating institutions to raise funds by selling claims on these assets to investors. The primary purpose of securitisation is to improve liquidity, transfer risk, and diversify funding sources.
The typical securitisation process involves several key steps. First, a financial institution, known as the originator,
Securitisations provide benefits including access to broader capital markets and risk diversification for originators. For investors,
The global financial crisis of 2007-2008 highlighted some risks associated with securitisations, particularly concerning the mispricing