Structured Finance Training and Securitization

best investment banking and capital market course by IIM, Lucknow

Securitization is taking an illiquid asset and converting it into security. This is done through financial engineering techniques, and it is a key part of structured finance training. By securitizing assets, investors can gain access to a broader range of investments, and this helps to improve liquidity in the marketplace. In addition, securitization can offer investors several benefits, including higher returns and reduced risk.

In a more straightforward form, it is pooling together similar assets and selling them off as securities. The purpose of securitizing assets is to spread the risk associated with them.

The process of securitization involves the following steps:

-Identification of assets: The first step is to identify the assets to be securitized. These could be loans, credit card receivables, leases, etc.

-Pooling of assets: The next step is to pool these assets together. This is done to diversify the risk associated with each asset.

-Creation of securities: Once the assets have been pooled together, they are then sold off as securities. The most common securities created through securitization are mortgage-backed securities and asset-backed securities.

Advantages of Structured Finance Training and Securitization:

The benefits of structured finance training and securitization are many. 

  • For one, it helps to spread the risk associated with specific assets. Additionally, it also allows for a more efficient allocation of capital.
  • By pooling together assets and selling them off as securities, investors can get exposure to a broader range of investments than possible otherwise. This, in turn, leads to higher returns for investors. 
  • Finally, structured finance training and securitization also help create a more liquid market for certain assets. This is because securities can be traded on secondary markets, which allows for a greater degree of price discovery.

Overall, structured finance training and securitization are two important concepts that you need to understand if you want to stay ahead in finance. By understanding how these two concepts work, you will be able to make more informed investment decisions and achieve higher returns as a finance professional.

Explore more with Imarticus Learning:

Get prepared for leadership roles in Financial Services and Capital Markets and reignite your finance career with IIM Lucknow.

The Advanced Management Program in Financial Services and Capital Markets provides a comprehensive understanding of the capital markets and risks, investment banking, and fintech domains. This 6-month intensive program offers the best-in-class education for high-performing middle management experienced professionals. 

The course comprises a highly engaging mix of learning methodologies, including masterclasses by industry speakers, live lectures, capstone projects, and simulations that accelerate learning.

Why opt for Diploma in Finance Management?

This advanced management program features a leading-edge curriculum that teaches fundamentals of corporate finance, fintech, risk management and compliance, capital markets, valuation, and equity research. 

It is the best course for mid-level professionals who have basic financial knowledge and skills and wish to gain a strong foothold in the industry. The course enables you to acquire vital skills and knowledge and open up avenues for reinitiating your career in finance through:

  • Peer networking through Campus immersion
  • Executive Alumni status of IIM Lucknow
  • Capstone projects and Simulations
  • Unique AMP curriculum in Financial Services and Capital Markets

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