Comparative Analysis OF Asset Securitization and Traditional Ways of Attraction of Borrowed Funds
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2023-04-23 19:26
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COBZARI, Ludmila, VOSTRICOV, Denis. Comparative Analysis OF Asset Securitization and Traditional Ways of Attraction of Borrowed Funds. In: 25 de ani de reformă economică în Republica Moldova: prin inovare şi competitivitate spre progres economic, 23-24 septembrie 2016, Chișinău. Chișinău, Republica Moldova: Departamentul Editorial-Poligrafic al ASEM, 2016, Vol.5, pp. 67-71. ISBN 978-9975-75-834-5.
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25 de ani de reformă economică în Republica Moldova: prin inovare şi competitivitate spre progres economic
Vol.5, 2016
Conferința "25 de ani de reformă economică în Republica Moldova: prin inovare şi competitivitate spre progres economic"
Chișinău, Moldova, 23-24 septembrie 2016

Comparative Analysis OF Asset Securitization and Traditional Ways of Attraction of Borrowed Funds

JEL: G10, G20

Pag. 67-71

Cobzari Ludmila, Vostricov Denis
 
Academia de Studii Economice din Moldova
 
 
Disponibil în IBN: 2 mai 2018


Rezumat

The essence of assets’ securitization is that it is characterized by the transformation of non-liquid assets into a first-class liquid and traded on the stock exchange securities. Moreover, it allows “repackaging” of non-traded assets of different credit quality into new high liquidity debt securities, which have a very high credit quality and are characterized by the flow of payments, which may differ significantly from what is generated by the primary assets. Regarding the choice of the optimal structure of the transaction and the adoption of measures aimed to reduce credit risk, the originator eliminates or minimizes the risks and ABS issuance receives a highest rating. Thus, a company with a low credit rating or no rating may raise funds in the Triple-A conditions.

Cuvinte-cheie
securitization of assets, fund,

non-liquid assets, specialized legal person (SPV), weighted average cost of capital (WACC), LIBOR