José Ramón Tora

Securitization: A Tool for Issuers to Reallocate Credit Risk and Widen the Investor Base

Securitization is a useful tool to deal with risk aversion for all players in capital markets. It’s the process of pooling various types of cash-flow generating assets, such as mortgages or loans, repackaging them and selling them as securities and, most importantly, offering different level of risk to buyers.