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What are Securitised Derivatives?
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9th Dec 2009 by Gary
A securitized derivative refers to a couple of things. First, to be securitized simply means there is a aggregation of a number of financial assets which are then converted to securities which can be traded. In and of itself, a derivative is simply a contract agreed to between two or more parties. The derivative contract's value is based upon what assets or securities (mentioned above) are valued at. The complexities of some securitized derivatives are in some cases almost impossible to figure out. While they can be used for hedging, they are extremely volatile and unpredictable as to their results.
A securitized derivative refers to a couple of things. First, to be securitized simply means there is a aggregation of a number of financial assets which are then converted to securities which can be traded. In and of itself, a derivative is simply a contract agreed to between two or more parties. The derivative contract's value is based upon what assets or securities (mentioned above) are valued at. The complexities of some securitized derivatives are in some cases almost impossible to figure out. While they can be used for hedging, they are extremely volatile and unpredictable as to their results.
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4th Dec 2009 In Derivatives
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Subjects: securitised derivatives,