Asset securitisation provides a means to capitalise future income flows into an asset, in this case Co’s rental income, and then use this asset as a means of borrowing funds. Converting the future rental income into an asset would likely be undertaken through SPV. Co would then manage the rent collection and use the rental income stream to pay the interest and capital over a specified time period
Sir instead of the above para, if I write following para then would it be fine:
Asset securitisation involve taking future rental income and converting them into assets through SPV. These assets are sold as bonds and future rental income will be used to pay coupon on the bonds. effectively, Co receives money from sale of asset today.