The collapse of the Bretton Woods currency system of fixed exchange rates is one of the developments believed to have triggered off growth in risk-reducing financial innovations. The progress of information technology, which facilitated payment settlements, provided another stimulus. There emerged new possibilities of substitution between various types of assets and traditional bank loans were increasingly replaced with new sources of financing based on a range of techniques and instruments.

Securitisation or issue of asset-backed debt instruments in order to raise capital developed first in the USA. Initially, the assets securitised were loans and credit cards. With the development of the financial market, more types of assets were securitised, but moreover, the transactions became increasingly sophisticated, involving chains of debts and issue of securities varying in the degree of risk.

The structure of securitising transactions as well as the construction of the security itself depend on the assets held by the economic unit which initiates the transaction (the originator). It is assumed that any transferable receivables can be securitised. However, they need to generate a credible, stable and statistically proven income. In contrast to other methods of financing by issue of securities, securitisation deals are structured with an aim to eliminate, as much as possible, the risk relating to the operations of the originator, the assets or the securities issued. Depending on the legal system and market conditions, different securitisation techniques are applied in different countries. The simplest and most frequent method is the true sale and subsequent refinancing of assets. This includes a full - from the legal point of view - transfer of assets, along with any risks involved in them, incomes and insurances or accessory rights pertaining to them (such as pledges, mortgages, guarantees) from the originator to a specially founded company, called a Special Purpose Vehicle. In the next step, the SPV raises funds in the capital market by issuing asset-backed securities. The SPV then uses the proceeds from the issue to settle its liabilities with the originator.

Securitisation has gained acceptance as a method which allows to reduce the cost of financing the ongoing activities of a company by raising funds against assets with a higher rating. It is also used to diversify the funding sources and investment portfolios. One of the frequently mentioned objectives of securitisation is to release regulatory capital by isolating illiquid assets and "repackaging" them into securities. It is worth mentioning that the role of securitisation is changing as the European Union evolves and credit rating - whether of governments, economic entities or securities - is becoming more important. Securitisation has often come to serve as a leverage, enabling issuers to achieve a higher rating than the one the originator enjoys. Thus, small and medium-sized companies have been able to raise funds in the international capital market. Securitisation will undoubtedly develop further as the advancing globalization and unification of financial systems exerts increasing pressure on economic regions.