TeachMeFinance.com - explain Securitization
Securitization The term 'Securitization' as it applies to the area of energy can be defined as ' A proposal for issuing bonds that would be used to buy down existing power contracts or other obligations. The bonds would be repaid by designating a portion of future customer bill payments. Customer bills would be lowered, since the cost of bond payments would be less than the power contract costs that would be avoided'.
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