Securitisation is used by financial entities to raise funds through channels which are other than traditional. Give examples of assets that can be securitised.

CS Professional · Corporate Funding & Listings in Stock Exchanges · PYQS · June 2025
Securitisation is used by financial entities to raise funds through channels which are other than traditional. Give examples of assets that can be securitised.

Answer & Explanation:

Securitization is the transformation of financial assets into securities. Securitization is used by financial entities to raise funding other than what is available via the traditional methods of on-balance-sheet funding. Few examples of assets that can be securitized are as under: Mortgage loans- Residential and Commercial Bank loans to businesses Commercial debt Educational/Student loans (Generally in US) Credit-card debt Automobile loans etc.

Topics: Corporate Funding

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