Securitization
FINANCIAL ENGINEERING
Securitizes; Securitized; Securitize; Life Insurance Securitization; Securitization transaction; Asset securitization; Issuance; Asset-backed securitization; Securitisation; Life insurance securitization; Cash flow waterfall; Originate-to-distribute
Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations (or other non-debt assets which generate receivables) and selling their related cash flows to third party investors as securities, which may be described as bonds, pass-through securities, or collateralized debt obligations (CDOs). Investors are repaid from the principal and interest cash flows collected from the underlying debt and redistributed through the capital structure of the new financing.