Securitisation
The process of financing an abstract contractual right for the payment of money — or more usually, a large collection of abstract contractual rights — like a portfolio of credit card receivables, student debts, commercial mortgages or albums full of moody instrumentals recorded in Berlin — by dumping them in selling them at their market value to an espievie, and having the espievie issue m,edium term notes secured on the espievie’s rights and title to that portfolio of mortgages.
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| Docs | Yuuuuuge, utterly impenetrable. What's that ratings methodogy all about? | 9 |
| Amendability | Nope. As is, where is. | 10 |
| Collateral | The Berlin trilogy and Ziggy Stardust, or a thrice-mortaged leaky condo in Law Vegas borders ... you choose | 6 |
| Transferability | Some in theory, but none in practice when you need it. | 7 |
| Leverage | Tranche-tastic. | 8 |
| Fright-o-meter | Dull and workmanlike, as long as we're not talking RMBS. | 7 |
Rescued a rock star’s moribund career in the 1990s, nearly blew up the financial world in 2008. So a boon and a bane, really.