benefits

Note: securitisation has been seriously abused in some quarters. It is important to distinguish good and bad uses of the technique.
Diamorphine helped ease my father’s terrible suffering in his last days. Heroin has destroyed many young lives. They are one and the same drug.
See also the Irish Independent article

Reasons for securitisation

Securitisation turns illiquid assets (or risks, in the case of insurers) into liquid securities. The assets (risks in the case of insurers) in question can be:

Corporates: trade debtors, stock/inventories, royalty payments

Banks: mortgages, property loans, corporate loans, personal loans, credit cards, leases…

Insurers: motor, mortality, catastrophe, corporate credit, subordinated debt...