securitisation

What is securitisation?

securitisation definition and meaning on Finance terms:
The pooling of financial assets, such as residential mortgage loans, and their subsequent sale to a special-purpose vehicle, which then issues fixed income securities for sale to investors. The principal and interest of these securities depend on the cash flows produced by the pool of underlying financial assets. <

 

reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html

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