when a standard loan is not enough to cover unique transactions dictated by a corporation s operational needs a number of structured finance products may be implemented along with cdos and cbos collateralized mortgage obligations cmos credit default swaps cdss and hybrid securities combining elements of debt and equity securities are often used 
securitization is the process through which a financial instrument is created by combining financial assets commonly resulting in such instruments as cdos asset backed securities abss and credit linked notes clns various tiers of these repackaged instruments are then sold to investors securitization much like structured finance promotes liquidity and is used to develop the structured financial products used by qualified businesses and other customers there are many benefits of securitization including being a less expensive source of funding and better use of capital mortgage backed securities mbss are a model example of securitization and its risk transferring utility mortgages may be grouped into one large pool leaving the issuer the opportunity to divide the pool into pieces that are based on the risk of default inherent to each mortgage the smaller pieces may then be sold to investors 