Indian Securitization Market - The Pros and Cons
Journal Title: JOURNAL OF COMMERCE AND TRADE - Year 2012, Vol 7, Issue 2
Abstract
Securitization is a financial instrument has had an extremely significant impact on the world’s financial system because it integrates capital markets and the uses of resources such as originators, mortgage, governments, finance companies, etc. Securitization has strengthened the trend towards disintermediation. Having been able to minimize agency costs, it has made lending more efficient; Evidence of Securitization can be observed in the mortgage markets. By permitting firms to originate and hold assets off its balance sheet, it has generated higher levels of leverage and greater economies of scale. In India securitization is getting popular due to its effectiveness. The combination of securitization techniques with credit derivatives and risk transfer devices are continued to develop innovative methods for minimizing risk, The risk can be transformed into a commodity which allow the various market participants and investors to enter into the sectors which were otherwise not open to them.
Authors and Affiliations
Shyam Kumar
Keywords
Related Articles
- EP ID EP248595
- DOI -
- Views 113
- Downloads 0
Consolidation in Banking Sector Through Mergers and Acquisition
Public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2 percent and 6.5percent respectively . Consolidation is an effective means to acquire compe...
An Overview on Corporate Social Responsibility and Sustainable Development in India
Nowadays due to globalization, the concept of Corporate Social Responsibility (CSR) has gained utmost importance and has become a worldwide concept whereby organisations consider the interests of society by taking respon...
Working Capital Management in Respect of Automobiles Industry in India
In the paper we have made an attempt to examine the practice in working capital management especially profitability ratios, traditional liquidity ratios and cash flow based ratios of the seven selected automobile compani...
Financial Support System towards Micro, Small and Medium Enterprises
Micro, small and medium enterprises (MSMEs) play a important role in the industrial development of the country. These enterprises contribute to the country’s GDP and are a major part of country’s industrial production, e...
Initial Public Offering : Issues and Procedures (Helping to Increase Capital Structure)
It is the initial public offer made by company to increase its capital structure. Companies provide opportunity to public to invest their money in their company. Companies effort to provide maximum profit to the public a...