The difference between operating property loans and asset securitization

Operating real estate mortgage loan is a kind of loan. That is, the stable cash flow generated by the operating assets that the borrower has purchased, built and put into production is the first repayment source to meet the financing needs of the borrower for the expansion, reconstruction and decoration of the above operating assets. In China, the operating institution is generally a commercial bank, which is a traditional on-balance-sheet credit business.

Asset securitization is a way of asset operation, which is generally a process of separating and reorganizing the risk and income elements of assets that lack liquidity but can generate predictable and stable cash flow through certain structural arrangements, and then transforming them into negotiable securities that can be sold in the financial market. The purpose is to realize illiquid assets in advance and solve liquidity risks.