Counterparty risk is the likelihood or probability that one of those involved in a transaction might default on its contractual obligation. Counterparty risk can exist in credit, investment, and trading transactions.
Published in Chapter:
Blockchain Technology in Securitization in India
Anirudh Menon (Center for Management Studies, Jain University (Deemed), India), Dikshant Khandelwal (Center for Management Studies, Jain University (Deemed), India), Kailash Multanmal Suthar (Center for Management Studies, Jain University (Deemed), India), and Sunitha B. K. (Center for Management Studies, Jain University (Deemed), India)
Copyright: © 2021
|Pages: 15
DOI: 10.4018/978-1-7998-6643-5.ch019
Abstract
Blockchain and securitization's benefits go beyond the benefits of loan originating, underwriting, rating assignment and reviews, loan servicing, smart contracts, secondary market trading. This research is based on the qualitative data collected from external sources. The focus is on using secondary data from over 30 research papers, articles, and professional experiments that have been taken into account, and the formulas and conditions gathered from them have been experimented with the Indian economic scenario. The understanding is that securitization has always been a challenge in a country like India, but with the wide range of benefits from the ‘blockchain', it can help improve the challenges and ensure a wider scope of securitization in a country like India, emphasizing that blockchain gives an elevated level of information security which brings about lower ingenuity trouble and disposes of administrative failures from the cycle of securitization.