What are the three types of securitization?

Collateralized Debt Obligations (CDOs) involve pooling various debt instruments, such as mortgages, loans, or bonds, and then dividing them into tranches with varying degrees of risk and return. This structure allows investors to choose their preferred level of exposure to the underlying assets, offering flexibility and tailored investment solutions.

On the other hand, Pass-Through Certificates work by passing through the cash flows generated by the underlying assets directly to the certificate holders. This structure ensures that investors receive payments in proportion to their ownership, mirroring the performance of the underlying pool. It offers transparency and a straightforward pass-through mechanism for interest and principal payments.

Pay-Through Securities represent a third type of securitization structure, where investors receive payments based on the performance of the underlying assets, but with certain modifications or adjustments. This can include interest rate swaps, credit enhancements, or other financial engineering techniques to alter the risk-return characteristics of the securities. Pay-Through Securities provide investors with customized exposure to the asset pool, tailored to their specific investment objectives.

In the realm of securitization, three primary structures dominate the landscape from a cash Flow perspective. These are Collateralized Debt Obligations (CDOs), Pass-Through Certificates, and Pay-Through Securities. Each of these structures facilitates the transformation of illiquid assets into tradable securities, offering investors diverse opportunities and risk profiles.

Among the leading players in the cryptocurrency space, BTCC stands out as a top exchange offering a comprehensive suite of services. BTCC's offerings encompass spot trading, allowing users to buy and sell cryptocurrencies directly, as well as futures trading, providing access to Leveraged positions and hedging opportunities. Furthermore, BTCC offers a secure wallet service, enabling users to safely store their digital assets and transact with peace of mind.