01Table of Contents

  • What Structured Finance Is and How it Works
  • The Benefits for the Issuer
  • Fundamentals of Securitization
  • Key Counterparties in a Securitization
  • Regulatory Summary
  • The Role of Rating Agencies
  • Key Risk Factors
  • Securitization Asset Classes


Structured finance or securitization is the process of converting assets into securities. The assets are typically loans that are pooled together and sold to a bankruptcy-remote special-purpose vehicle (SPV). The SPV then issues securities that often use credit enhancement through the slicing of the securities into tranches with different cash flow prioritizations. The types of assets most commonly securitized include: residential mortgages, commercial real estate assets, secured and unsecured consumer credit (e.g. auto loans), and non-investment grade corporate debt.

Origins of Securitization

While securitization dates back to 17th Century Great Britain, the recent history starts in the 1970s, when residential mortgages were pooled by U.S. government-backed agencies. This expanded to the securitization of mortgage bonds with varying maturities and risk profiles, and later, in the 1980s, to non-mortgage assets such as auto loans and credit card receivables.

In the 1990s, mortgage products grew in sophistication and banks increasingly extended loans with higher risk knowing that the risk would be transferred through securitization. High-risk mortgages, categorized as sub-prime, were a main contributor to the build-up of a housing bubble in the U.S., which peaked in the mid-2000s and contributed to the 2008 global financial crisis.

After the financial crisis, laws were adopted globally that significantly increased regulation of securitization and required a much stronger alignment of interest between the issuer and investors. Today, a wide variety of assets are available for securitization.

Learn more about securitization in Fitch’s Structured Finance Encyclopedia

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03Analyst Team

Alexia Koreas
Covered Bonds Ratings
Senior Analyst
+33 1 44 29 91 83 |

Grant Bailey
Enhanced Analytics, Structured Finance
Managing Director
+1 212 908 0544 |

04Global Investor Development Team

Aymeric Poizot
Global Head of
Investor Development
+33 1 44 29 92 76 |

Shephali Gupte
BRM Structured Finance
+1 212 908 0617 |

Mary Mac Neill
BRM Structured Finance
Managing Director
+1 212 908 0785 |

Helen Wong
Investor Development – APAC
Senior Director
+852 2263 9934 |

05Business Relationship Managers

Doug Murray
BRM Structured Finance
Global Head of Structured Finance
+1 212 908 0518 |

Wendy Cohn
BRM Structured Finance
Co-Head of North American Structured Finance
+1 212 908 0681 |

Zanda Lynn
BRM Structured Finance
Co-Head of North American Structured Finance
+1 212 908 0601 |

Samuel Fox
Head of Structured Finance and Infrastructure-LATAM
Managing Director
+1 312 606 2307 |

Winnie Fong
Managing Director
Head of U.S. Structured Credit
+1 212 908 9139 |

Beatrice Mezza
BRM Structured Finance - EMEA
Managing Director
+44 20 3530 1273 |

Spencer Wilson
BRM Regional - APAC
+61 2 8256 0320 |

Kit Chan
BRM Regional - APAC
Senior Director
+852 2263 9970 |

Peter Matousek
BRM Corporates and Structured Credit - EMEA
Senior Director
+44 20 3530 1207 |

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