In the first stage there is sale of single asset or pooling and sale of pool of assets by the owner of the assets (“Originator”) to a “bankruptcy remote” special purpose vehicle (“SPV”) in return for an immediate cash payment, and in the second stage repackaging and/or selling of the security interests representing claims on incoming cash flows from the asset or pool of assets to third party investors by issuance of tradable debt securities.
4. Thus in a nutshell, Securitisation is the process of taking an illiquid asset, or group of assets, and through financial engineering, transforming them into a security. Advantages of Securitisation 5. Securitisation can offer a number of advantages for the stakeholders.