Securitized products

The income-generating assets of a company are pooled separately from its balance sheet into a special-purpose vehicle (SPV), and the SPV issues a security backed by the cash flow to be generated by such assets and sells the security to investors. This method is called "securitization." And the security issed through such a proces is generally called a "securitized product." Business enterprises use their assets- such as auto loans, mortgage loans, lease receivables, business loans, and commerical real astate- as collateral to back up their securitized products.

0p hgiang 11-03-2009 110 10   Download