Asset securitization — transforming illiquid assets into tradable securities — is a large and growing market, even rivaling the corporate debt market in size. While the underlying assets can be very different — ranging from song royalties to home mortgages — most asset-backed securities nevertheless share some distinctive features. In “The Economics of Asset Securitization,” Ronel Elul explains why asset-backed securities exist and discusses some reasons for their common structure.
This article appeared in the Third Quarter 2005 edition of Business Review.
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