Securitisation

Banking basics A recap of a few things you’d think financial professionals ought to know →This page on the premium JC Top Trumps®Financial Weapons of Mass Destruction® Securitisation “Ground control to major financial crisis” 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 Index: Click ᐅ to expand: Banking Mythology Office life Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

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 medium term notes secured on the espievie’s rights and title to that portfolio of mortgages.

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.

See also

• Financialisation