Debt Consolidation

Securitization occurs when a ensemble groups together assets or receivables and sells them in units to the outlet through a trust. Any asset with a cashflow can be securitized. The cash flows from these receivables are disposed to pay the holders of these units. Companies often do this in order to remove these assets from their balance sheets and monetize an asset. Although these assets are "removed" from the equity sheet and are supposed to be the responsibility of the trust, that does not boundary the company's involvement.

In this case, the creditor hopes to regain something equivalent to the debit and concern in the formation of dividends and capital gains of the borrower. The "repayments" are therefore proportional to what the borrower earns and so can not in themselves cause bankruptcy. Once Debt Consolidation capital is converted in this way, it is no longer noted as debt.