Securitization is a corporate funding technique that is widely adopted by financial and industrial companies throughout the world, used to finance both working capital and capital budgets. It is also used as a risk management tool and a source of liquidity. Securitization has been adapted to fund corporate acquisitions, capitalize future streams of revenue and to liquidate pools of nonperforming loans.
Securitization experts Charles Stone and Anne Zissu provide an explanation of how securitization works and how future cash flows from various asset classes - from credit card receipts and mortgage payments to movie royalties - can be packaged into bond-like products and sold to investors. The discussion includes descriptions of all major classes of asset-backed securities and offers a practice-oriented commentary on trends in securitazation and the value of asset-and mortgage-backed securities across industries and through the global markets.