if an organization directly securitized its income-producing assets without using a special purpose vehicle (spv) as an intermediary, investors

Respuesta :

Because an organization holds many different forms of assets and incurs many different types of liabilities, analyzing overall credit risk is complicated.

What is securitization, and how does it make real estate investments easier?

In order to repackage specific asset classes into interest-bearing securities, securitization involves pooling those assets. The assets pay interest and principal payments to the securities buyers.

How does the securitization process contribute to maintaining liquidity?

The securitization process has made it possible for normal investors to purchase shares of products that would otherwise be out of their price range. For instance, a buyer of mortgage-backed securities (MBS) can expect to receive monthly principal and interest payments.

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Universidad de Mexico