What is a securitized Bond?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
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What is a securitized Bond?

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Introduction

When the outstanding bonds are pooled together to form a new category of product and then is traded for other asset class, the process is known as Bond Securitization.

The holder still gets the coupons or the interest payments but not on the fixed rate. It is dependent on the underlying asset.

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