Through Securitisation, an originator with a relatively lower credit rating but with better rated cash flow would be able to borrow/raise funds against such higher rated cash flows at cheaper cost. iii. It improves the liquidity position of the originator as the future receivables are replaced by cash. BIS central bankers’ speeches  1  iv.
Securitisation can be used as a potent tool for re-balancing and re-distributing risks such as credit, market or liquidity risk or risk concentrations on the balance sheet of the originator. For investors For the investing parties, Securitisation offers different set of benefits. i. It provides another option for diversifying their debt portfolio. ii.