Asset-backed securities constitute a growing proportion of the U.S. and global capital markets. The asset securitization technique, while complex, has won a secure place in corporate financing and investment portfolios because it can, paradoxically, offer originators a cheaper source of funding and investors a superior return. Not only does securitization transform illiquid assets into tradeable securities, but it also manages to transform risk by means of the separation of sound financial assets from a company or financial institution with little or no loss of revenue. The assets, once separated from the originator, are employed as backing for high-quality securities designed to appeal to investors.

This website offers articles, case studies, Internet links and downloadable resources on the securitization technique.