Professional Documents
Culture Documents
Himanshu Arora
Securitization
Securitization is the issuance of marketable
securities backed by the expected cash flows
from specific assets (receivables)
Parties to an issue
The initial owner of the loans.
Originator Sells them to the SPV
Subscribe to securities
Investors issued by SPV
Parties to an issue (contd.)
Collects money from Obligors,
Collection monitors and maintains assets.
Agent Usually the originator
5 Contracts
Ongoing cash flows
Initial cash flows
Structurer
Why securitize assets?