Securitization

How it is used

Use for the financing structure; legal transfer, risk allocation and accounting treatment depend on the deal.

Example sentences

1. The bank financed a pool of vehicle loans through securitization.

   Receipts from pooled exposures support securities issued to investors.

2. The securitization allocated losses differently across its senior and junior tranches.

   The structure can divide risk into ranked layers.

Common collocations

• securitization transaction
• loan securitization

Related terms

• securitiesFinancial assets that can be bought and sold, such as shares, bonds and bills, which give the owner rights like part ownership or a claim to repayment.
• receivablesMoney that customers owe a company for goods or services already delivered, shown as an asset on the balance sheet.

More terms: Corporate Finance

• cash flow
• capital
• working capital
• leverage
• dividend
• bond
• valuation
• M&A
• IPO
• due diligence
• shareholder
• raise capital