Securitisation 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).
However, as is apparent from the amount of work and planning involved in this effort – particularly, though not exclusively, on cross-border matters – the construction of a resolution framework remains an ongoing challenge.