Securitization

Securitization
  The act of pledging assets to a creditor through a note, lien or bond. This is a mechanism to allow a utility to recover stranded costs up front in a single lump sum payment. Under a securitization scheme, the legislature or utility commission orders customers to pay a surcharge as part of their electric bill. That surcharge must be paid within the utility's original service territory, regardless of who supplies the electricity to customers.
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  A proposal for issuing bonds that would be used to buy down existing power contracts or other obligations. The bonds would be repaid by designating a portion of future customer bill payments. Customer bills would be lowered, since the cost of bond payments would be less than the power contract costs that would be avoided.
  U.S. Dept. of Energy, Energy Information Administration's Energy Glossary

Energy terms . 2014.

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  • Securitization — is a structured finance process, which involves pooling and repackaging of cash flow producing financial assets into securities that are then sold to investors. The name securitization is derived from the fact that the form of financial… …   Wikipedia

  • securitization — A means of raising finance secured on the back of identifiable and predictable cash flows derived from a particular class of assets (such as rents, receivables, mortgages or operating properties). Almost any assets that generate a predictable… …   Law dictionary

  • Securitization —   [sɪkjʊərɪtaɪ zeɪʃn, englisch] die, , allgemein die zunehmende Verbriefung von Gläubiger Schuldner Beziehungen, im Besonderen die verstärkte Neigung großer, bonitätsstarker Unternehmen, im Rahmen ihrer Kapitalbeschaffung die Kreditaufnahme bei… …   Universal-Lexikon

  • securitization — The process and the result of pooling financial assets together and issuing liability and equity obligations backed by the resulting pool of assets to convert those assets into marketable securities. The underlying assets are usually, but always …   Financial and business terms

  • Securitization — Verbriefung (englisch: Securitization) bedeutet die Schaffung von handelbaren Wertpapieren (englisch:Securities) aus Forderungen (= zukünftige Zahlungsströme) oder Eigentumsrechten im weitesten Sinne. Inhaltsverzeichnis 1 Beispiele für verbriefte …   Deutsch Wikipedia

  • Securitization — The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors. The process can encompass any type of financial asset and… …   Investment dictionary

  • Securitization — Se|cu|ri|ti|za|tion [sikjuəritai zeiʃn̩] die; <aus gleichbed. engl. securitization zu to securitize »in börsenfähige Effekten umwandeln«>: a) die zunehmende Verbriefung von Gläubiger Schuldner Beziehungen; b) die verstärkte Neigung großer,… …   Das große Fremdwörterbuch

  • Securitization (international relations) — Securitization in international relations is a concept of thought connected with the Copenhagen School, a largely constructivistic approach to international security. It is a means to specify whether a given area of interest is merely ordinarily… …   Wikipedia

  • securitization — noun see securitize …   New Collegiate Dictionary

  • securitization — noun /sɪˈkjʊəɹɪtʌɪzeɪʃən/ The fact or process of securitizing assets; the conversion of loans into securities, usually in order to sell them on to other investors …   Wiktionary

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