Asset Securitisation

    Asset Securitisation – is a risk management mechanism by financial institutions to mitigate the ill-effects of asset liability mismatch and other risks. Securitisation is the repackaging of receivables of long-term and ill liquid assets (NPAs) into tradable forms. Hence asset securitisation involves transforming the assets from the book of a lending institution (commercial bank) to the books of a special purpose vehicle for a price.