NON-MORTGAGE STRUCTURED FINANCIAL INSTRUMENTS IN THE CONTEMPORARY FINANCIAL MARKETS

Summary: The paper analyzes the new forms of financial instruments in the contemporary financial markets, generated in the process of securitization. The concept of securitization itself is explained, i.e. the creation of securities based on various forms of receivables which primarily evolved from mortgage transactions. In order to lower capital charges and reduce the creditor’s credit exposure, receivables are converted into securities of various credit rating and maturity. The comparative analysis of the financial markets in Europe and the USA illustrates the main forms of receivables used as underlying assets in the creation of structured financial instruments. Among them, the most significant are receivables in respect of credit cards, car loans and student loans.