The recent credit crisis stigmatized securitization, the practice widely associated with the now infamous subprime mortgages and defaults of asset-backed securities. But the market for the securitization of trade account receivables
is alive and well, and continues to provide companies with low-cost and low-risk financing options.
Despite the heavy criticism of securitization, anecdotal evidence shows that companies have maintained interest in securitizing receivables. Even a recent change in the accounting treatment of securitization facilities to achieve more transparency won't curb that interest, according to experts.