March 11, 2025

Introduction The CUSIP system plays a crucial role in risk identification within the securitization market by providing a unique identifier for each security. This allows investors, analysts, and regulators to track individual securities and their underlying assets with greater precision. Each asset-backed security (ABS), mortgage-backed security (MBS), and collateralized loan obligation (CLO) issued in the […]

Introduction Securitization is one of the most sophisticated financial mechanisms that has reshaped the modern capital markets, enabling financial institutions to convert illiquid assets into tradable securities. This process involves pooling various financial assets, such as mortgages, auto loans, credit card receivables, or student loans, and repackaging them into interest-bearing securities that investors can purchase.

Introduction to Securitization Securitization is a financial process in which various types of financial assets—such as mortgages, auto loans, or credit card debt—are pooled together and transformed into securities that can be sold to investors. This process enhances liquidity in financial markets by converting illiquid assets into tradable instruments. The structured nature of securitization enables