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Securitization refers to the process of
turning assets into securities – financial
instruments that can be readily bought
and sold in financial markets, the way
stocks, bonds and futures contracts are
traded.
Securitization is the process of
transformation of non-tradable assets into
tradable securities. It is a structured
finance process that distributes risk by
aggregating debt instruments in a pool
and issues new securities backed by the
pool.
By doing what we do
best: adapting and
evolving!
Basic Model of Securitization
We plant for the future!
Additional Source Of Funds
Greater Profitability
Better Risk Management
Lower Cost Of Funding
Better Than Traditional form of
Financing
Higher Rate Of Rate Return
The attractive cost of Funds
Spreading of Credit Risk
Provision of Multiple instruments
To every disadvantage is a
corresponding advantage
Lack of Transparency
Complex to Handle
Quite Expensive
Investor bears Risk
Loss from Prepayment
Traditional Assets
Digital Assets
Identification
process
Transfer Process
issue process
Redemption
process
Credit rating
process
Item 1 Item 2 Item 3 Item 4 Item 5
40
30
20
10
0
- James Cash Penney
ANAND KAPUR
MBA-FINANCE

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Securitization of Debt (Debt Securitization) Types of Securitization, Progress of securitization in India