Asset securitization refers to the process of issuing asset-backed securities with the future cash flow of the underlying assets as repayment support and credit enhancement through structured design.
Broadly speaking, asset securitization refers to the asset operation mode in which an asset or portfolio appears in the form of securities assets, including the following four categories:
1. Securitization of physical assets: that is, the transformation of physical assets into securities assets is a process of issuing securities and listing them on the basis of physical assets and intangible assets.
2. Securitization of credit assets: reorganize a group of credit assets with poor liquidity such as bank loans and enterprise accounts receivable to form an asset pool, so that the cash flow income generated by this group of assets is relatively stable and is expected to remain stable in the future, and then match it with corresponding credit guarantees. On this basis, the income right of the future cash flow generated by this group of assets will be converted into high-credit bond securities that can be issued in the financial market.
3. Securitization of securities assets: that is, the re-securitization process of securities assets, that is, securities or portfolio of securities are used as the basic assets, and then securities are issued based on the cash flow generated by them or variables related to cash flow.
4. Securitization of cash assets: refers to the process that cash holders convert cash into securities through investment.