Business Studies, asked by TrijitAdhikary576, 10 months ago

Securitisation is a process of acquiring the loans classified as

Answers

Answered by atharvvbhagat
0

Answer:

simple loans . compound loans .

Answered by mindfulmaisel
0

Securitization is a process of acquiring the loans classified as non-performing assets.

Explanation:

  • Securitization is the method that is adopted by a financial institution for converting convert illiquid assets into cash.  
  • They are able to do this by pooling the illiquid assets like auto loans, residential mortgages, commercial mortgages, and more to form securities that are then sold to investors.  
  • The investors can use these as securities, bonds or other forms of debt obligations.  
  • The interest and other forms of principal payments from the underlying assets are used for the purchase of securities.

Learn more about Securitization

In securitization who is the seller of pool of loans

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Why did the securitization of bundles as being aaa impact the residential mortgage market so negatively during the 2008 financial crisis?

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