Securitization

usgb/sɪˌkjʊrɪtəˈzeɪʃən/
noun

The process of converting assets into marketable securities.

Securitization allows banks to sell their loans to investors.
Visual representation of "securitization" - The process of converting assets into marketable securities.

Often appears as...

  • securitization of debt
  • real estate securitization

Usage tips

Formal

asset-backed securities, mortgage-backed securities, financial instruments

Definition 1 of 1
Visual representation of "securitization"
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Understanding Securitization

Securitization is a financial process that transforms loans into securities, which can appear complex at first glance.

Illustration for Understanding Securitization
Securitization is commonly used in mortgage markets.
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Emphasizing the benefits

Highlight how securitization can increase liquidity in the market.

Illustration for Emphasizing the benefits
In conversations about finance, focus on the relationship between risks and benefits.
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Complexity

Recognize that securitization can be confusing for many, as it involves multiple financial players.

Illustration for Complexity
Use 'securitization' when discussing real estate or corporate finance specifically.
Visual representation of the word "Securitization"

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