The four types of asset securitization are residential mortgage securitization, asset-backed securities, commercial mortgage securitization, and other types of asset securitization.

1. Housing mortgage loan securitization

This is one of the most common forms of asset securitization. It packages a large number of housing mortgage loans into an asset pool and then converts them into A tradable security that provides borrowers with a low-cost method of financing. At the same time, investors can also obtain stable income by purchasing these securities.

2. Asset-backed securities

This form of asset securitization packages assets that lack liquidity but can generate foreseeable future cash flows into an asset pool, and then Securities are issued based on these cash flows. This type of securitization is useful for companies that have large assets but are illiquid.

3. Commercial mortgage securitization

This form of asset securitization converts commercial real estate mortgages into tradable securities. This type of securitization can provide a lower-cost financing method for commercial real estate while providing investors with a new investment channel.

4. Other types of asset securitization

In addition to the above three types, there are some other forms of asset securitization, such as aircraft lease securitization, car loan securitization, etc. . These forms of asset securitization are intended to convert less liquid assets into tradable securities and improve asset liquidity.

Uses of asset securitization

1. Investment and financing

Asset securitization can convert less liquid assets into highly liquid securities , providing new investment opportunities for investors and new financing channels for enterprises.

2. Enhance liquidity

Through asset securitization, companies can use assets that lack liquidity but can generate predictable and stable cash flow through reorganization and credit enhancement. into securities with higher liquidity, thus enhancing the liquidity of assets.

3. Open up the market

Asset securitization can open up different financial markets, connect the real estate market, indirect financing market, and direct financing market to each other, and increase the liquidity and activity of the market. , Promote the further development of financial markets.

It should be noted that in the process of asset securitization, controlling the quality of underlying assets and controlling excessive re-securitization are key.