Cryptocurrency Q&A
Who issues a securitization?
Who issues a securitization?
Rosalia
Mon Sep 02 2024
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5 answers
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Can you clarify for me, who exactly is responsible for issuing a securitization? Is it the originator of the assets, an investment bank, or perhaps a third-party entity? And what is the process involved in issuing such a financial instrument? I'm interested in understanding the roles and responsibilities of each party involved in the process, as well as the legal and regulatory frameworks that govern the issuance of securitizations.
5 answers
CryptoAlly
Wed Sep 04 2024
Among the various cryptocurrency exchanges available, BTCC stands out as a top player in the industry. BTCC offers a wide range of services, including spot trading, futures trading, and cryptocurrency wallet services.
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CryptoMercenary
Wed Sep 04 2024
The process of securitization begins when a financial institution, often referred to as the originator, transferor, seller, or sponsor, possesses a substantial pool of credit card receivables. These receivables can either be originated by the institution itself or acquired through purchase.
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Carolina
Wed Sep 04 2024
The spot trading service on BTCC allows users to buy and sell cryptocurrencies at current market prices, providing a convenient platform for investors to execute their trades. The futures trading service, on the other hand, enables users to speculate on the future price movements of cryptocurrencies, offering a more advanced trading option.
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CryptoGladiatorGuard
Wed Sep 04 2024
Once the pool of receivables reaches a significant volume, the institution transfers them to a Special Purpose Entity (SPE). This SPE is a wholly-owned subsidiary that is designed to be bankruptcy-remote, ensuring that the assets within it are protected from any potential insolvency of the parent institution.
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SakuraDance
Wed Sep 04 2024
The SPE then takes on the role of issuing securities that are backed by the pool of credit card receivables. These securities are typically sold to investors, who receive interest payments based on the cash flows generated by the receivables.
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