Securitisation is a process whereby finance can be raised from external investors by enabling them to invest in parcels of specific financial assets. Domestic mortgage loans are so far the most common type of assets to be securitised in the United Kingdom, but in principle the technique can readily be extended to other assets, such as credit card receivables, other consumer loans, lease receivables and so on.
KeywordsIncome Assure Expense Stake
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- 1.ED 49, para. D.10.Google Scholar
- 2.Ibid., paras. D.11 and 12.Google Scholar
- 3.Ibid., paras. D.14.Google Scholar
- 4.FRED 4, Application Note D, para. D9.Google Scholar
- 5.Ibid., para. D20.Google Scholar
- 6.These conditions are discussed further in paras. D10 to D12 of the Application Note.Google Scholar
- 7.Ibid., para. D21.Google Scholar
- 8.Ibid., para. D22.Google Scholar
- 9.Ibid., para. D23.Google Scholar
- 10.The reasons for this are explained in para. D15 of the Application Note.Google Scholar
- 11.FRED 4, paras. 32 and 80, and Application Note D, para. D25.Google Scholar
- 12.E40, Accounting for Financial Instruments, IASC, September 1991, para. 28.Google Scholar
- 13.Ibid., para. 32.Google Scholar