Securitization

Securitization is the name given to the securitization of financial contracts, i.e. the trend to dress them in the form of securities so that they can be traded. In this context, financial contracts are often broken down, and the rights of the investors are individually securitized and offered to different groups of investors via the financial markets.

Easier tradability (fungibility) of financial contracts supports the formation of markets, which in turn enable efficient allocations to arise. For banks this means that they can easily pass on securities, especially claims against difficult debtors, on the stock exchange. This reduces the bond between debtor and creditor.

A special form of securitized financial contracts are collateralized instruments, so-called asset-backed securities (ABS): The term encompasses all transactions, transactions, loans or securities in which a pledged asset serves to improve the credit quality.

The historical origins of ABS are the mortgage-backed securities, which were first issued in the USA in the 1970s, i.e. the securitization of mortgage-backed loans.

Receivables, securities, cash flows, credit cards, leasing contracts, student loans and short-term loans serve as securitizable assets. The securitization of assets has both economic and economic effects.

In einer engeren Definition steht Securitisation für eine innovative Form der financing, deren Ursprung in den USA liegt, die aber in zunehmendem Masse auch in Europa angewandt wird. Hierbei werden Assets aus der Unternehmensbilanz ausgegliedert und von einem eigens gegründeten Finanzintermediär über die internationalen Geld- und Kapitalmärkte refinanziert. Falls diese Refinanzierung durch Wertpapiere erfolgt, spricht man von Asset-backed securities, falls sie durch Kredite erfolgt von Asset-backed loans.

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