SECURITIZATION: ESSENCE, CLASSIFICATION, AND RELEVANCE OF USE IN UKRAINE
Abstract
The research aims to critically review, summarize, and classify various approaches to using securitization for further implementation in Ukraine within the framework of post-war economic and infrastructure recovery. It examines the main stages of securitization of assets' introduction and development, analyzes and identifies the main types of securitization, and presents their classification. It is argued that securitization contributes to the progressive development of the financial market by reducing risks and increasing the efficiency of capital use in its redistribution and attracting investments through intermediary companies. It elucidates the core principles underlying securitization processes, distinguish between various types of securitized instruments, and assess their applicability and significance for Ukraine's economic environment. The analysis underscores the potential benefits of securitization in diversifying funding sources, enhancing liquidity, and facilitating risk management, while also examining the regulatory, market, and infrastructural prerequisites for its effective implementation in Ukraine. It has been proven that securitization is a flexible and effective mechanism for attracting capital and hedging risks, which has long been and successfully used in the financial practice of foreign countries. The implementation of the securitization mechanism will enable Ukrainian businesses to attract the necessary financing by controlling any cash flow that exhibits signs of stability. For investors, securitization is appealing due to the predictability of cash inflows, thanks to the standardization of assets included in the asset pool. Research into financial activities in the corporate sector indicates that securitization is a promising financial instrument for Ukraine, especially in the context of post-war reconstruction, financing the military-industrial complex, and attracting investments into civilian enterprises. The implementation of securitization can mobilize significant financial resources, offering a reliable mechanism for economic revitalization and investments in both public and private sectors.
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