What is RESIDUAL VALUE SECURITIZATION?

A security that protects the firm from residual value risks. If short fall should occur principal and coupons are reduced or suspended. Refer to catastrophe bond, life acquisition cost securitization, mortgage default securitization, and weather bond.

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Related Legal Terms
CATASTROPHE BOND, INSURANCE-LINKED SECURITY (ILS), WEATHER BOND, RESIDUAL VALUE GUARANTEE, MORTGAGE DEFAULT SECURITIZATION, RESIDUAL VALUE, SECURITIZATION, LIFE ACQUISITION COST SECURITIZATION, RESIDUAL CUSHION, BUILDING RESIDUAL METHOD


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