The sale of securities backed by the receivables of large credit worthy firms is a large source of financing.

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Securitization of receivables is a common practice where a firm sells its outstanding invoices or receivables to a special purpose vehicle (SPV), which then issues securities that are backed by these receivables. The SPV uses the cash flow from these receivables to pay interest and principal on the securities. This allows the company to raise financing by tapping into the liquidity of the capital markets, while providing investors with a steady stream of income. The securitization market for receivables has grown rapidly in recent years, and is a significant source of financing for large creditworthy firms.

The Sale of Securities Backed by the Receivables of Large