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