Structured Asset Securitization as a Funding Technique and Implementations in Turkey

Funding and the risk of institutions have led these institutions to transfer risk and introduce new funding methods. Risk transfer is one of the important features of the markets. The compensation for taking a monetary risk should be less than the potential loss due to risk. The risk trade in this sense has resulted in the development of structured finance. Structured finance refers to the services created by financial institutions with the use of complicated transactions and in order to meet the needs of firms for private financing. Securitization constitutes one of these structured finance techniques, which is defined as the process of converting assets that make payments based on non-liquid assets that are pooled together into liquid securities. The main objective of the study is to examine the securitization practices in Turkey. In this context, general information about securitization, process, sides of the process, advantages and disadvantages, risks are examined from a theoretical perspective