Speaking of Securitization of Financial Assets

Munteanu Bogdan ()
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Munteanu Bogdan: National School of Political and Administrative Studies

Ovidius University Annals, Economic Sciences Series, 2017, vol. XVII, issue 1, 611-615

Abstract: The history of securitization dates back to “Middle Ages†, as it has emerged into today’srefinements under various ways of obtaining liquidity to finance business growth. As today manyblame securitization and low interest rates for the American crisis, this paper aims at sheddinglight upon what this technique is, what are its benefits and why the past economic growth expandedbased on pools of pledged assets. The main risk of securitization is that the systematic risk (beta) ofthe market is less relevant then the assets’ inner risks (alpha), as this technique creates tailor madeproducts with very specific features. The relevance of securitization will remain open for futureanalysis in America as basis for creating investment resources to sustain development after thegloomy days of September 2008.

Keywords: asset classes; interest rates; liquidity; ratings; securitization; tranching (search for similar items in EconPapers)
JEL-codes: G11 G12 G15 G21 G22 G23 G24 G31 G32 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:ovi:oviste:v:xvii:y:2017:i:1:p:611-615

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