Start learning 50% faster. Sign in now
Securitization is a process by which a company pools its different financial assets/debts to form a consolidated financial instrument which is issued to investors. In return, the investors in such securities get interest. This process enhances liquidity in the market. This serves as a useful tool, especially for financial companies, as its helps them raise funds. If such a company has already issued a large number of loans to its customers and wants to further add to the number, then the practice of securitization can come to its rescue.
In such a case, the company can club its assets/debts, form financial instruments and then issue them to investors. This enables the firm to raise capital and provide more loans to its customers. On the other hand, investors are able to diversify their portfolios and earn quality returns.
Mark the correct meaning of the Idioms given below-
To take to one's heels
Bury the hatchet
I. The two countries decided to bury the hatchet and work towards the welfare of the people.
II. I hope that one day, the...
In the question below, a sentence is given with a part missing. From the options below, choose the correct combination of idioms that can fit in the bl...
Indians are going places in the field of software technology.
A penny for your thoughts
To move heaven and earth
Select the most appropriate meaning of the given idiom.
To bear the palm
By rule of the thumb
In the following question, a sentence is given with the phrase or idiom highlighted in bold. Select the option given below that cannot replace the phra...
Blood Is Thicker Than Water