FAQs on Biomedical Megafund

Since the publication of Fernandez, Stein, and Lo (2012) on using securitization techniques to raise funds from the private sector to support biomedical research, the MIT Laboratory for Financial Engineering (LFE) has received a number of stimulating comments and questions about these techniques. Rather than replying to each inquiry individually, we decided to respond via this “frequently asked questions” document so as to stimulate broader dialogue among those with an interest in this subject.