[Verse 1] Banks craft mortgages, auto loans galore Originators build their lending store But capital gets trapped, tied up tight Need fresh funds to spark the lending light [Pre-Chorus] Bundle up the payments, slice and dice Transform the risk, roll the dice [Chorus] SPV buys loans away Special Purpose Vehicle takes the freight Securities issued, investors pay O-S-I, that's the securitization way Originate, Sell, Invest today Credit flows through this financial relay [Verse 2] Special Purpose Vehicle stands alone Bankruptcy remote, guards the loan zone Pools the payments, monthly streams Carved into tranches, investor dreams [Pre-Chorus] Senior gets paid first in line Subordinate takes the riskier wine [Chorus] SPV buys loans away Special Purpose Vehicle takes the freight Securities issued, investors pay O-S-I, that's the securitization way Originate, Sell, Invest today Credit flows through this financial relay [Bridge] Credit enhancement wraps around Over-collateralization keeps it sound Rating agencies grade each slice AAA down to speculative price [Verse 3] Servicer collects what borrowers owe Trustee watches how the payments flow Waterfall structure guides the cash Senior tranches get their splash [Final Chorus] SPV buys loans away Special Purpose Vehicle takes the freight Securities issued, investors pay O-S-I, that's the securitization way Transform illiquid into tradeable play Credit markets dance this endless ballet [Outro] From mortgage desk to trading floor Securitization opens every door
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