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How does loan securitization compare to other means of risk management? Do you think all types...

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Finance

How does loan securitization compare to other means of riskmanagement? Do you think all types of assets held by FI should besecuritized? Please explain.

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Securitization is the process through which an issuer creates afinancial instrument by combining other financial assets and thenmarketing different tiers of the repackaged instruments toinvestors and this process can encompass any type of financialasset and promotes liquidity in the marketplaceThis helps the creditors to lower their risk level    See Answer
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