Posts Tagged ‘Asset securitization’

Asset securitization.

Saturday, October 3rd, 2009

Over the past 30 years an entire industry has developed, led by investment bankers, to develop and sell asset securitization products. These provide an alternative way for companies to finance their operating assets. We can illustrate this by using a simple example of a company that owns its head office. By entering into a sale and leaseback type of arrangement the company can reduce its assets and hence borrowing requirement.