Signed in as:
filler@godaddy.com
Signed in as:
filler@godaddy.com
A securitization SPV can acquire risks linked to future cash flows of any kind. That includes :
The investors are issued a security which yield and a value are linked with the future cash flow (usually a discounted cash flow).
The security pays a coupon (or an appreciation in value of a zero-coupon bond) with a yield depending on the future cash flow securitized by the SPV.
The securitization SPV may also raise capital by issuing securities which proceed will serve to fund a company, a third party activity or an investments into such a future cash flow.
The value of acquisition of the future cash flow is usually calculated upfront by a discount of the future cash flow as an immediate payment. The investors obtain a yield taking into consideration the uncertainty of receiving such future income streams.
As such investors buy the future income streams, the yield and the risk associated with the returns.
Copyright © 2021 Blakrox - All Rights Reserved.
Powered by Blakrox
We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.