Financial Asset Securitization Investment Trust - FASIT

AAA

DEFINITION of 'Financial Asset Securitization Investment Trust - FASIT'

A financing tool that allows for the securitization of non-mortgage assets and usually involves debt obligations with short maturities such as credit card receivables, home equity loans and car loans. Financial Asset Securitization Investment Trust (FASIT) is similar to Real Estate Mortgage Investment Conduits (REMIC), created under the Small Business Job Protection Act of 1996.

INVESTOPEDIA EXPLAINS 'Financial Asset Securitization Investment Trust - FASIT'

FASITs are often attractive securitization vehicles because of their inherent flexibility. To qualify as a FASIT, an entity has to: elect to be treated as one, hold only eligible assets and have a single owndership interest, among other requirements.

RELATED TERMS
  1. Widely Held Fixed Investment Trust ...

    A fixed investment trust that is held by at least one third party, ...
  2. Securitize

    A pooled group of financial assets that together create a new ...
  3. Securitization

    The process through which an issuer creates a financial instrument ...
  4. Mortgage-Backed Security (MBS)

    A type of asset-backed security that is secured by a mortgage ...
  5. Asset

    1. A resource with economic value that an individual, corporation ...
  6. Real Estate Mortgage Investment ...

    A complex pool of mortgage securities created for the purpose ...
RELATED FAQS
  1. What are the most effective ways to reduce moral hazard?

    There are a number of ways to reduce moral hazard, including the offering of incentives, policies to prevent immoral behavior ... Read Full Answer >>
  2. What are the primary differences between a closed end investment and an open end ...

    The primary differences between closed-end funds and open-end funds lie in how they are structured and how they are bought ... Read Full Answer >>
  3. What are the most common leveraged ETFs that track the drugs sector?

    The most common leveraged exchange-traded funds (ETFs) that track the pharmaceutical industry are the two offered by Proshares: ... Read Full Answer >>
  4. What is required to become an accredited investor in a private placement?

    The term "accredited investors" is defined by the U.S. Securities and Exchange Commission (SEC) as individuals with a net ... Read Full Answer >>
  5. What are the Basel III rules, and how does it impact my bank investments?

    The Basel III rules are a regulatory framework designed to strengthen financial institutions by placing guidelines pertaining ... Read Full Answer >>
  6. Why should you invest in tangible assets?

    Savers who deliberately buy tangible assets for investment purposes value their tangible goods as a form of value diversification ... Read Full Answer >>
Related Articles
  1. Insurance

    Behind The Scenes Of Your Mortgage

    Four major players slice and dice your mortgage in the secondary market.
  2. Options & Futures

    Alternative Assets For Average Investors

    These investments can add a new level of diversification to your portfolio.
  3. Insurance

    Investing In Securitized Products

    Securitized assets are customizable and have a wide range of yields, making them an attractive asset class.
  4. Retirement

    Risk And Diversification

    Safeguarding your portfolio involves a few simple steps.
  5. Forex

    Best Ways To Protect Your Bitcoins

    Just like any other valuable asset, its important to keep your bitcoins safe. Here are few ways to protect bitcoins from threats like computer failures, loss of passwords, and hackers.
  6. Investing Basics

    What's the Primary Market?

    The primary markets are where investors can get first crack at a new security issuance.
  7. Forex

    10 Cities Leading Bitcoin Adoption

    An overview of the global cities leading the way in using the virtual currency Bitcoin.
  8. Forex

    Beware of these Five Bitcoin Scams

    We look at five bitcoin scams and how to protect yourself from fraud.
  9. Investing

    Bitcoin Vs. Litecoin: What's The Difference?

    Litecoin is often referred to as "the silver to Bitcoin's gold." But what is Litecoin, and how does it compare to its more famous counterpart?
  10. Forex Education

    Why Governments Are Afraid Of Bitcoin

    Bitcoin is the first decentralized peer-to-peer payment network and cryptocurrency. Governments may fear Bitcoin because its value is determined by users and not central governments or banks. ...

You May Also Like

Hot Definitions
  1. Fisher Effect

    An economic theory proposed by economist Irving Fisher that describes the relationship between inflation and both real and ...
  2. Fiduciary

    1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets ...
  3. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  4. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  5. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  6. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
Trading Center