In a securitization, we can take a balance-sheet perspective: on the left-hand side, credit-sensitive assets (collateral) have value, create cash flow, and contain risk; on the…more »In a securitization, we can take a balance-sheet perspective: on the left-hand side, credit-sensitive assets (collateral) have value, create cash flow, and contain risk; on the right, liabilities (tranches issued to investors) IN TOTAL must preserve ... « less
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