Title: Securitization: A Low-Cost Sweetener for Lemons
Abstract: Securitization is a technique firms use to raise financing. In securitization transactions, a firm issues securities payable from collections on its receivables. Securitization, in its present form, was created in the early 1970s. Transaction volume has grown rapidly; by the end of 1994, more than $1.9 trillion in securitization securities were outstanding.