Industry Analysis & Industry Trends
Securitisation was one of the first industries to genuinely feel the effects of the global financial crisis, and it is still feeling the effects. Unlike banking industries, which have the ability to generate funding through deposits, this securitisation industry obtains the vast majority of its funds through the securitisation market, a market that was all but frozen by the global financial crisis. Securitisation allows companies to package the debt they originate into tradable securities that they can on-sell in secondary markets. In doing so, they free up their balance sheets and create additional funds to originate more loans... purchase to read more
Industry Report - Starting a New Business Chapter
IBISWorld estimates that there are medium barriers to entry in this industry. Although the industry has grown at a rapid rate prior to the crisis, and is expected to grow once more in the future, entrants can find it difficult to enter as there are barriers relating to asset ownership, appropriate staffing infrastructure, competition with large banks, as well as degrees of reputation and branding that must be overcome.
The major barriers comprise the ownership of a viable base of assets in terms of value and suitability for securitisation. In this instance, the use of securitisation has expanded rapidly over the past five years; however, the need to have and attain a strong base of assets is difficult.
High level asset management skills are also required... purchase to read more