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Understanding Securitization

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Based in Luxembourg, Firminy Capital Sarl offers securities funds management and fiduciary services. Founded in 2007, Firminy Capital Sarl manages the Firminy Equity Fund, a private securitization fund, with the goal of completing profitable and safe securitizations for its clients.

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Understanding Securitization

  1. 1.  Based in Luxembourg, Firminy Capital Sarl offers securities funds management and fiduciary services. Founded in 2007, Firminy Capital Sarl manages the Firminy Equity Fund, a private securitization fund, with the goal of completing profitable and safe securitizations for its clients. Illiquid assets cannot be quickly sold without the risk of significant loss. Securitization offers a powerful opportunity to anyone in possession of illiquid assets, protecting these assets by transforming them into securities.
  2. 2.  A security is a financial instrument that is both fungible and negotiable and that signifies some form of financial value; examples of securities are stocks and bonds. Through financial engineering, securitization turns illiquid assets into securities (viz. liquid assets) that can be more readily bought and sold without losing value. To accomplish securitization, an issuer must combine an illiquid asset with other financial assets to create a new, single financial instrument. Next, the issuer must repackage this financial instrument into segments. Finally, the issuer must successfully market these repackaged segments to investors.

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