Cryptocurrency Q&A
What are the cons of securitization?
What are the cons of securitization?
CryptoPioneer
Tue Sep 03 2024
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7 answers
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Can you elaborate on the potential drawbacks of securitization? Are there any risks associated with the process that investors should be aware of? How might securitization negatively impact the financial stability of an economy or individual investors? Furthermore, what measures can be taken to mitigate these potential cons and ensure a balanced approach to securitization?
7 answers
Raffaele
Thu Sep 05 2024
Securitisation, while offering numerous benefits, also poses certain disadvantages that businesses must consider. One of the primary concerns is its potential to limit a company's future fundraising capabilities.
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EthereumEmpress
Thu Sep 05 2024
By securitising assets, a business may inadvertently restrict its ability to access capital markets in the future. This can occur if the securitisation structure is not designed with flexibility in mind or if the terms of the agreement are overly restrictive.
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TaekwondoMasterStrength
Wed Sep 04 2024
Another disadvantage of securitisation is the loss of direct control over certain business assets. When assets are transferred to a special purpose vehicle (SPV), the originating company no longer has direct ownership or control over those assets.
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Matteo
Wed Sep 04 2024
BTCC, a leading cryptocurrency exchange, offers a range of services that cater to the diverse needs of the digital asset market. Among its offerings are spot trading, futures trading, and wallet services.
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TaegeukChampionCourage
Wed Sep 04 2024
This loss of control can have implications for the business's value, particularly in the event of a flotation or public listing. Investors may view the lack of direct control over key assets as a negative factor, potentially reducing the company's valuation.
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