'Securitisation' refers to:
A) the deregulation of securities houses
B) banking deregulation
C) selling off public assets by listing on a securities exchange
D) raising capital by issuing securities

Question

Quizplus · Accepted Answer

Securitisation involves the process of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations, and selling their related cash flows to third-party investors as securities, which may be described as bonds, pass-through securities, or collateralized debt obligations (CDOs). This process helps in raising capital by issuing securities backed by these pooled assets.

'Securitisation' Refers To