BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Securitization can be defined as a process of converting illiquid financial assets into a combined investment instrument that reduces the risk of non-payment. In other words, a bank has a long-term loan that cannot be converted into cash quickly.

Detailed explanation-2: -Securitization is the process in which certain types of assets are pooled so that they can be repackaged into interest-bearing securities. The interest and principal payments from the assets are passed through to the purchasers of the securities.

Detailed explanation-3: -Asset securitization is the structured process whereby interests in loans and other receivables are packaged, underwritten, and sold in the form of “asset-backed” securities.

Detailed explanation-4: -Debt securitization is the process of packaging debts from a number of sources into a single security to be sold to investors. Many such securities are batches of home mortgage loans that are sold by the banks that granted them. The buyer is typically a trust that converts the loans into a marketable security.

Detailed explanation-5: -The process of securitisation involves the transformation of illiquid financial assets into liquid, tradable securities, thereby widening participation in the capital markets and allowing risk to be transferred to those willing to bear it.