financial asset securitization investment trust (FASIT)

Definition

A securitization tool to pool various types of contractual debt obligations and spread the risk to investors. Similar to a Real Estate Mortgage Investment Conduit (REMIC), a financial asset securitization investment trust has the advantage of working with a funding pool that is not frozen. Rules for such trusts were approved by Congress in 1996 but were repealed in 2004 because of the ENRON scandal. However, the rules still apply for trusts that existed before October 22nd, 2004.
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Financial Asset Securitisation Investment Trust financial buyer