Investors Credit securitization offers multiple new investment instruments for mutual funds, insurers, pension funds, and other investors. This increase in choice and availability is in itself attractive, but investors have other reasons to be pleased with asset-backed securities: 1. These securities typically offer a greater level of protection from rating downgrades than traditional debt securities Investors in asset-backed securities are structurally protected from the event risk that the originator's credit quality may deteriorate. Unlike a normal corporation, a special-purpose vehicle cannot be restructured by management through in creased leverage or other means. 2. As a developmental asset class asset-backed securities typically provide premium yields compared to those of com parable conventional instruments
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