Asset Securitization: Converting Intangible Assets Into Financial Securities
Dr. Leyla Kaya
Department of Banking and Finance, Istanbul University, Turkey
Dr. Ahmet Yılmaz
Department of Banking and Finance, Istanbul University, Turkey
Abstract
The financial landscape witnessed a significant transformation in the 1980s with the emergence of a groundbreaking innovation known as the securitization of assets. This innovation fundamentally reshaped the role of financial intermediaries within the capital market. Securitization involves the process through which financial intermediaries, such as investment banks, package and sell property assets from owners to investors in the form of securities. During this process, the property assets are detached from the owner's balance sheet, and funds are raised directly from investors who acquire tradable instruments representing a claim on the underlying debt, independent of the original owner. The concept of asset securitization originated in the United States during the 1970s and has since become a pivotal and highly valued financial product in global capital markets.