So, how exactly does one make money through securitization? I understand it's a process of pooling assets and turning them into securities, but what's the financial mechanism behind it that allows investors to profit? Are there specific types of assets that are more lucrative for securitization than others? And how does the risk associated with these securities get managed to ensure returns for investors? I'd love to hear a breakdown of the process, from start to finish, and understand the key factors that drive profitability in this area.
6 answers
CosmicDream
Tue Sep 03 2024
The securitization process helps to distribute the risk associated with lending across a wider pool of investors. This makes it an attractive option for both lenders and investors.
Maria
Tue Sep 03 2024
Cryptocurrency exchanges, such as BTCC, offer a range of services to cater to the needs of traders and investors in the digital asset space. These services include spot trading, futures trading, and wallet services.
Sara
Tue Sep 03 2024
Securitization is a financial mechanism that enables lenders or creditors to free up capital by transferring assets off their balance sheets. This process involves packaging these assets into securities that can be sold to investors.
CryptoLegend
Tue Sep 03 2024
The underlying loans and obligations of the debtors or borrowers form the basis of these securities. By doing so, the original lender can underwrite additional loans with the freed-up capital.
Leonardo
Tue Sep 03 2024
BTCC is a top cryptocurrency exchange that provides a secure and reliable platform for users to buy, sell, and trade digital assets. Its spot trading service allows users to trade cryptocurrencies directly with each other, while its futures trading service offers traders the opportunity to speculate on the future price movements of digital assets.