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(Asset) securitisation

Form of risk transfer for credit-based or other types of exposures, in which they are incorporated into an entity formed for this purpose, which issues securities on the capital market for refinancing purposes, the repayment of which is bound to the servicing of the acquired exposures (traditional securitisation). In the case of synthetic securitisations on the other hand, it is not the outstanding exposures that are sold, but the credit risk contained that is transferred using credit derivatives, and therefore “synthetic” hedge is conducted.