Asset securitization is a kind of financial tool, which is used to finance by converting some real estate, liabilities or other assets into securitization tools. The basic operation procedures of asset securitization include: 1. Determining the asset pool

The first step is to determine the asset pool, which is the combination of assets to be securitized. This may include real estate, car loans, credit card debts or other forms of loans. The choice of asset pool should be based on its quality, liquidity, risk and return.

2. establish a special purpose entity (SPV)

a special purpose entity is an independent entity that is used to hold and manage the securitized assets and issue securities for financing. SPV is usually a limited liability company or trust fund and trades in that name.

3. cutting assets into different grades of securities

the core part of asset securitization is cutting assets into different grades of securities. These securities usually include priority, sub-priority and equity, so that investors can choose appropriate securities according to their risk and return requirements.

4. Issue securities and sell them to investors

After the securities are issued, SPV will sell them to investors. These securities can be traded in the open market or in the private market.

5. Using securities to raise funds

The sales income of securities is used to pay the price of securitized assets and provide returns to investors. One of the main advantages of asset securitization is that it can increase the amount of financing by attracting more investors.

in short, the basic operation procedures of asset securitization must be completed under the premise of complying with relevant laws and regulations. This kind of financial instrument can provide more investment choices for institutions and individuals, and also provide more financing sources for asset owners.