Securitisation

You mean securitisation 🙂

It is effectively turning income into capital by (for example) selling shares (and getting the cash therefore) in return for the future income.

For example (and this is actually a good illustration of what securitisation is), 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.

You are welcome 🙂