Securitisation converts pools of loans, leases, or receivables into marketable securities to improve liquidity and allocate credit risk. Originators transfer assets to a bankruptcy-remote vehicle which issues tranches with varying priorities, yields, and risk profiles to investors. Investors assess securitised products by reviewing cash flow structures, credit enhancement, servicing arrangements, and underlying asset performance. Regulatory standards, transparency requirements and independent analysis influence pricing; due diligence and scenario testing are essential to evaluate returns and risks.
