Securitization (redirected from securization)

Securitization

The process of creating a financial instrument by combining other financial assets and then marketing them to investors.

Notes:

Mortgage backed securities are a perfect example of securitization.

May also be spelled as "securitisation."

See also: Mortgage Backed Security, Structured Finance

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Securitization

Creating a more or less standard investment instrument such as the mortgage pass-through security, by pooling assets to back the instrument. Also refers to the replacement of nonmarketable loans and/or cash flows provided by financial intermediaries with negotiable securities issued in the public capital markets.