SECURITIZATION OF FINANCIAL ASSETS: ESSENCE AND REASONS OF DISTRIBUTION IN ECONOMIC PROCESSES

Анотація

Financial innovations have been and remain an integral part of the economic development of countries in recent dec-ades. The need for effective tools and technologies that would allow hedging, managing the market risks, which ultimately affected rapid emergence of new financial instruments, trading mechanisms and technologies has significantly increased. Their use accelerates new financial relationships that can solve these problems.The main purpose of the article is to deepen theoretical provisions of the securitization process of financial assets, fea-tures and reasons for its dissemination in economic processes.There are different approaches to determining the essence of securitization of financial assets. The securitization in the narrow sense has two types –securitization of assets (bonds issue on the basis of mortgage or consumer loans, debts on cred-it cards) and securitization of liabilities (issuing to depositors of bonds of the domestic state currency loan or bank billsin-stead of funds). It has been proved that securitization of assets has been the most widespread. The author’s interpretation of the securitization of financial assets as an innovative form of financing, which involves obtaining profits by financial institu-tions from the sale of a pool of financial assets generating stable cash flow, specially created legal entity that will issue secu-rities with new properties and forms of collateral has been submitted. With the financial market development, new trends, tools and processes appear that allow to activate the market, strengthen financial capabilities of market participants, in-crease their liquidity. The main trends in the financial market development are globalization and dissemination. There are several approaches to explaining the occurrence of securitization. Most often, its occurrence is explained as the activities of companies in response to state regulation in the field of banking.

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