Skip navigation
Using Securitization as a Corporate Funding Tool
Report

Using Securitization as a Corporate Funding Tool

QFinance, 2014

auto-generated audio
auto-generated audio

Editorial Rating

8

Qualities

  • Comprehensive
  • Analytical
  • Innovative

Recommendation

This concise report from corporate finance expert Frank J. Fabozzi makes the case that securitization is still a good funding option for companies. His clear, informative primer explains the alphabet soup of securitization terminology (SPE, CDO, ABS, MBS) and shows nonfinancial firms how to lower their cost of debt while better managing their risk. getAbstract believes that corporate treasury and finance executives considering a dip into the securitization market will find this useful introductory text delivers a good return on their time investment.

Take-Aways

  • Securitization provides a crucial channel for acquiring corporate funding. It is “the process of creating securities backed by a pool of loans or receivables.”
  • Securitization offers a way for companies to borrow on more favorable terms and to reduce their risk.
  • The sale of corporate income-generating assets, such as accounts receivable, to a legally distinct special purpose entity (SPE) distinguishes the credit rating of the company from that of the SPE’s bonds.

About the Author

Frank J. Fabozzi is a finance professor at France’s EDHEC (École des hautes études commerciales du nord) and the author of several well-known books on finance.