Securitization: Basics

Securitization: Basics

Intuition Publishing
Updated Sep 25, 2020

Securitization is a process whereby the cash flows from a relatively illiquid pool of collateral assets can be repackaged and sold to investors. The process is controversial because of its role in the recent financial crisis. Here we look a the key elements of securitization, the challenges involved in securitizing assets, and the role of securitization in the financial crisis.