Securitization is the process of taking an illiquid asset, or group of assets, and through financial engineering, transforming them into a security like mortgage-backed security (MBS), Assets Backed Securities, Credit derivatives, ……,types of asset-backed security that is secured by a collection of assets. Securitization is the process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors. The process can encompass any type of financial asset and promotes liquidity in the marketplace.

BASNCO financial engineering personnel employs expert services to repackage those securities which best fit for each tier lairs of ultimate investors with their investment objectives and time horizon. The process creates liquidity by enabling smaller investors to purchase shares in a larger asset pool. Using the mortgage-backed security as an example, individual retail investors are able to purchase portions of a mortgage as a type of bond. Without the securitization of mortgages, retail investors may not be able to afford to buy into a large pool of mortgages.

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