The key stages undertaken when creating the asset-backed-securities Basically, the structured process through which interest in receivables and loans are underwritten, packaged, and equally sold in form of the asset-backed-securities is what is dubbed as asset securitization. However, the security structure is usually stated by the type of collateral that supports it. The only main difference that exists between pools of securitized credit and participations or complete loan sales is what constitutes the transaction structuring process. Before the conversion of most loan pools into backed securities, there is often the need to structure them amicably to revise the returns and risks nature to the ultimate investors (Levin and Davidson, 2008, pp. 41-55). Thus, there are four notable main stages in the process of creating the asset-backed securities and these include:   * Segregation of assets from originator or seller   * Creation of a specialized functional vehicle to seize the asset to protect the interest of various parties   * Addition of credit enhancements to improve the salability   * Issuance of interest in asset pools Assets Segregation Securitization ideally allows the investors to assess the asset security quality individually except for the credit worthiness of the seller or originator. To realize this, the originator is deemed to convey the receivables to an existing trust for the advantage of the certificate holders. In cases appertaining to revolving type asset, the conveyance would cover the amounts of the receivables in certain consigned accounts on specific cut-off dates in addition to the trust’s option to purchase some new receivables which arise out of the designated accounts after the cut-off date. Actually, the receivables and accounts are exposed to specific representations, warranties, and eligibility criteria of the originator or seller. Choosing the accounts: Initial pool selections, accounts removals, and additions In step one, the accounts receivables to be vented to the trusts are designated by the seller. For instance, the past owing receivables might be left in eligible pools while accounts that have had write-offs or defaults might be excluded. Other choosing criteria may include the data element like maturity date, the account age relationship, the credit line size, or geographic location. Step two entails selecting the assets either inclusively to sell all the qualifying receivables, or randomly to create selections that represent the entire portfolio (Fabozzi, 2000, pp. 170). Additional accounts may also be designated for trusts that have revolving features for assimilation purposes while in some cases the sellers reserve the capacities to withdraw various accounts earlier allocated for the trusts. Creation of the securitization vehicles According to Levin and Davidson (2008, pp. 41-5), the banks often structure the asset-backed securities via owner trusts, revolving assets trusts, or grantor trusts, each one customarily issuing different kinds of securities. While selecting the structure of a trust, banks aim at ensuring that the transactions adequately protect the asset from the issuer creditor’s reach and that the securitization vehicle of the issuer and that of the investor receives