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securtralization?



securtralization? ..

Answer / sreeram

Securitization is the process by which financial assets are
transformed in to securities. Securitization is different
from factoring since the later involves transfer of debts
without transformation thereof in to securities.

Securitization is a mode of financing, where in securities
are issued on the basis of a package of assets (called Asset
pool). In this method of recycling funds, assets generating
steady cash flows are packaged together and against this
asset pool, market securities can be issued.

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