Banking and securities law

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  • Securitisation: understanding this key mechanism in banking and finance law

    By Charlotte GAUCHON
    16 June 2025
    Securitisation is a financial mechanism that is often perceived as complex and sometimes associated with past economic turbulence. Yet it is a powerful and structuring financing tool for banks and large corporates alike. Understanding its fundamental principles enables us to grasp how assets, such as receivables, can be transformed to access new sources of liquidity. This article provides an overview of securitisation, covering its mechanisms, players and legal framework, aspects that we cover in greater depth in our dedicated publications. Structuring these complex transactions requires expertise in banking and financial law to ensure security and compliance. What is securitisation and how does it work? Securitisation is a financial technique that involves transforming illiquid assets, such as a portfolio of mortgages or trade receivables, into financial securities that can be traded on the markets. The aim is to...
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