What is Debt Securitisation? Explain risks attached to debt securitization.

Debt securitization is a financial process that involves pooling various types of debt, such as loans or receivables, and then issuing securities backed by these pooled assets. These securities are typically sold to investors in the capital markets. The primary purpose of debt securitization is to convert illiquid debt assets into tradable securities, providing a source of funds for the entity originating the debt.

Here's a brief explanation of the risks associated with debt securitization:

1. Credit Risk: The most significant risk in debt securitization is credit risk. This risk arises from the fact that the quality of the underlying debt may deteriorate over time, ________ ____ _______ ________ _______ _____ _________.
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