Securitization occurs when a company groups together assets or receivables and sells them in units to the bazaar through a trust. Any asset with a cashflow can be securitized. The cash flows from these receivables are used to pay the holders of these units. Companies often do this in order to remove these assets from their balance sheets and monetize an asset. Although these assets are "removed" from the inequality sheet and are supposed to be the responsibility of the trust, that does not extremity the company's involvement.
Often the assemblage maintains a especial interest in the trust which is called an "interest only strip" or "first deprivation piece". Any payments from the trust must be unnatural to regular investors in precedence to this interest. This protects investors from a grade of Debt Consolidation Loan risk, controlling the securitization amassed attractive. The aforementioned brings into question whether the assets are truly off-balance-sheet given the company's exposure to losses on this interest.