Howsoever hard one tries, it becomes well nigh impossible to disassociate from the immediacy of the crisis, particularly when talking about a market so intricately linked to the crisis – securitisation. 3. Securitisation generically refers to the pooling of cash-flow-producing assets (e.g., mortgages, loans, bonds) and subsequent issuance of securities in the capital markets backed by these collateral pools.
This broad definition encompasses simple non-tranched structures, including covered bonds and pass through structures as well as tranched waterfall structures. The latter is a recent phenomenon and it is this version which accentuated the crisis. 4.