Securitization and Asset-Backed Securities

In this section

• How Securitization Works
  Understand the securitization process, key market participants, and how pooled assets are turned into tradable securities.
• Mortgage-Backed Securities (MBS)
  Learn how mortgage-backed securities are created, how cash flows reach investors, and what risks matter most.
• ABS Structure and Tranching
  Understand how asset-backed securities are structured, how tranches and credit support work, and how ABS differs from MBS.
• Benefits and Risks of ABS Investing
  Review the main yield, diversification, credit, prepayment, and complexity considerations in ABS investing.