Future Flows Securitizations

Future Flows Securitizations

Intuition Publishing Pty Ltd
Updated Sep 25, 2020

A future flow securitization is one where the originator sells its futures receivables/cash flows to a special purpose vehicle which issues securities. Such transactions are common in emerging market countries. Here we investigate the types of collateral and structures involved, the risks of future flow securitizations, and the characteristics of the resultant securities.