Cryptocurrency Q&A How does securitization make money?

How does securitization make money?

KimchiChic KimchiChic Mon Oct 28 2024 | 5 answers 862
I'm curious about how securitization generates profit. I want to understand the process and mechanisms behind it that lead to financial gains. How does securitization make money?

5 answers

Martina Martina Wed Oct 30 2024
Securitization is a financial process where various types of assets are grouped together.

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KimonoElegance KimonoElegance Tue Oct 29 2024
These assets can include mortgages, auto loans, or even credit card debt.

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Ilaria Ilaria Tue Oct 29 2024
By pooling these assets, they are then repackaged into tradable securities.

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BlockchainWizardGuard BlockchainWizardGuard Tue Oct 29 2024
These securities are known as asset-backed securities (ABS).

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JejuSunshineSoul JejuSunshineSoul Tue Oct 29 2024
The company that owns the original assets is able to transfer them off their balance sheet.

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