Securitization

Method of company financing based on the sale or transfer of certain assets to a third party, which at the same time finances the purchase by issuing securities (which are placed among the investors). In Spain, the securitization method consists of the entity that wants to finance itself (assignor) selling assets to a "Securitization Fund," which has no legal personality and is managed by a management company. The fund issues securities, which are backed by the purchased assets.