Securitization of Assets: An Accounting and Finance Case

Authors

  • John W. Briggs James Madison University
  • Joseph Beams University of New Orleans

Abstract

This educational case explores the interesting and complex topic of asset securitization. In the past decade, a large portion of worldwide debt issuances have used this process. Securitization is the transformation of long-term receivables into new debt securities that look entirely different. These securities are sold into the investment markets and traded with liquidity. In this assignment, students model the full set of cash flows in a simulated securitization of equipment loans, and evaluate the underlying accounting and finance issues. An actual securitization is also analyzed to gain a real-world perspective.

Author Biographies

  • John W. Briggs, James Madison University
    Associate Professor School of Accounting
  • Joseph Beams, University of New Orleans
    Oil & Gas Professor of Accounting

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Published

2012-12-18

Issue

Section

Articles

How to Cite

Securitization of Assets: An Accounting and Finance Case. (2012). The Accounting Educators’ Journal, 22. https://www.aejournal.com/ojs/index.php/aej/article/view/219