Please enable JavaScript.
Coggle requires JavaScript to display documents.
International Asset-backed finance - Coggle Diagram
- International Asset-backed finance
Types of loan
Non-recourse loan
A type of loan where the lender's only claim on repayment is the collateral provided, and the lender has no recourse to the borrower's other assets or income in case of default.
Recourse loan
A recourse loan allows the lender to pursue the borrower's other assets or income in case of default and lower interest rate.
-
Securitization
Deifinition
A pooling of illiquid assets and converted into tradable securities, also known as asset-backed securities. The purpose is to raise new fund and reduce credit risk.
Process
The illiquid asset will pool together and send them to SPV . The loan convert to securities and sell to the investors in the open market. The payment of loan plus interest will flow to the securities
-