“FASITS,” Derivatives and Financial Instruments, IBFD (2001), with Ann E. Singer DFI 2001-1 FASIT
One of the more significant developments in the finance world in the last 50 years has been the streamlining of the securitization process. Securitization involves the bundling together of assets that are not readily marketable and repackaging them into a series of marketable securities. This is accomplished through the sale of the assets into an appropriately structured entity that issues securities using the non-marketable assets as collateral. Many different types of assets can be made available to the investment community this way, such as home mortgages, credit card loans, vehicle loans, student loans, even future movie royalties. The securitization process in the United States can be tripped up in several ways by the federal income tax laws.