Lecture for securitisation

There is no lecture (because it has only been asked once in the exam). For example (and this is actually a good illustration of what securitisation it), the singer David Bowie was earning income from sales of his records and plays on the radio. He securitised it by forming a company and selling the shares. As a result, the shareholders now get the income from his records. He no longer gets it, but instead got a lot of money from the issue of the shares. He turned his future income into a big capital receipt, by issuing shares that were backed by the income. Also, there is a technical article about it on the ACCA website.