Because of securitization, the costs paid by borrowers can be effectively
reduced.
Fixed Income MCQ - Fixed Income Section 1
In a securitization, the special purpose vehicle (SPV) is responsible for the
issuance of the asset backed securities.
In a securitization, the seller of the collateral is called the originator.
Special purpose vehicles (SPV) sell asset backed securities. The originator
sells assets (receivables) to the SPV for cash. The servicer is responsible
for the collection of payments from the borrowers.
