I'm curious about how securitization generates profit. I want to understand the process and mechanisms behind it that lead to financial gains.
5 answers
Martina
Wed Oct 30 2024
Securitization is a financial process where various types of assets are grouped together.
KimonoElegance
Tue Oct 29 2024
These assets can include mortgages, auto loans, or even credit card debt.
Ilaria
Tue Oct 29 2024
By pooling these assets, they are then repackaged into tradable securities.
BlockchainWizardGuard
Tue Oct 29 2024
These securities are known as asset-backed securities (ABS).
JejuSunshineSoul
Tue Oct 29 2024
The company that owns the original assets is able to transfer them off their balance sheet.