Vanderbilt Journal of Entertainment & Technology Law


Hewson Chen

First Page



Securitization is the selling of debt to investors. In general, securitization converts future income streams like credit card receivables or auto loan payments to present in-pocket cash. Notably, this transformation from future income to current wealth gives the issuer of the security immediate access to cash at less cost than other financing methods such as bank loans. In the 1970s, this technique was applied to the housing industry, and since then, securitization has evolved into greater varieties of income streams, including medical insurance, typhoon insurance, and unused airline tickets. The application of securitization in the entertainment industry, however, remains largely untested.