Finance ABC

Welcome back to Finance ABC, everyone. I’m Emma Lai, and today’s episode is all about securitization and asset-backed securities. These may sound like complex financial concepts, but they’re actually at the heart of much of modern finance, especially when it comes to how loans and other debts are handled by financial institutions. If you’ve ever wondered how banks manage to lend out huge sums while still keeping enough cash on hand, or how investments can be created from mortgages, car loans, and even credit card debt, then securitization is what makes all that possible.