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Financial Asset Securitization Investment Trusts

Definition

A financial asset securitization investment trust (FASIT) is an entity that securitizes debt obligations such as credit card receivables, home equity loans, and automobile loans. A regular interest in a FASIT is treated as a debt instrument.

The rules described under Collateralized Debt Obligations (CDOs), earlier, apply to a regular interest in a FASIT, except that a holder of a regular interest in a FASIT must use an accrual method of accounting to report OID and interest incomeĀ See Page 26