Securitization

Securitization offers borrowers a strategic funding alternative by enabling them to turn assets with predictable cash flows into a capital source, thereby restructuring their risk profile, obtaining a cash infusion, and perhaps reducing their capital requirements by removing the assets from the balance sheet. Because asset-backed securities represent rights to future cash flow from the underlying collateral, they offer investors the benefits of high credit quality as well as yield enhancement. Citi has led the market in securitizing assets including mortgages, home equity loans, credit card receivables, trade receivables and auto loans through structures such as bonds, notes, commercial paper, Euronotes, Eurobonds, certificates of deposit, pass-through and pay-through securities and property income certificates.