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Securitization is the process where bonds are issued based off of the cash flows of an asset. The most common asset is a mortgage, but technically the cash flows from any asset can be securitized (credit cards, a vending machine, auto loans, student loans,ect). Securitization bankers are split into different product groups (ie CMBS bankers, RMBS bankers, ABS bankers). These bankers provide due diligence and work with clients to see which loans/assets will be securitized. A credit card company (client) may want to securitize credit card debt so that it can collect some money and get it off of its balance sheet...bankers do the due diligence and see at what levels they could offer the debt. They may also be involved in the structuring side of the deal in terms of fixed and floating rate tranches. They work closely with Securitized Products syndicate desk who will place the deal with clients...if the bank cannot place the deal and is not willing to take it onto its balance sheet then the deal needs to be restructured or it dies.

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