securitized


Also found in: Dictionary.
Related to securitized: Securitized Mortgage

Securitization

The process by which a company packages its illiquid assets as a security. For example, when a company makes an initial public offering, it effectively packages the company's ownership into a certain number of stock certificates. Securities are backed by an asset, such as equity, or debt, such as a portion of a mortgage. Securitization allows a company access to greater funding to expand its operations or investments, or some other reason.

securitized

Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds.
Case Study Tobacco companies agreed in the late 1990s to provide states with billions of dollars in cash payments over many years. The huge monetary settlements came in response to lawsuits filed by the states for health-related expenses resulting from their citizens' tobacco use. Unwilling to wait for all the promised money, politicians in several states proposed issuing debt securities backed by the promised revenue streams. Promised cash flows from the settlement would be securitized with bonds sold to investors. Florida governor Jeb Bush proposed that his state sell half its $17.4 billion settlement to be received over many years for approximately $2.4 billion. Some financial analysts worried potential lawsuits could force tobacco companies into bankruptcy, in which case promised payment from the settlements would be at risk. Securitizing the settlement payments would transfer the risk from the states to investors who purchased the bonds. Buying the bonds that were backed by promised tobacco company payments would allow individual investors to participate in the settlements.
References in periodicals archive ?
Based in New York, Allman will build upon the firm's world-class ABS underwriting platform and help expand its Securitized Products business to cover additional niche assets.
Resolutions in the same timeframe for 50 securitized loans totalling $370.7 million were mainly achieved through full payoffs (62%) and loans returned to performing status (18%).
In the statement of facts, Morgan Stanley acknowledged that it increased the acceptable risk levels for loans in its securitized pools.
Additionally, screenshots in the CFLA Securitization Audit also provide current loan modification static data for the investor / trusts, including how, when, where, and what amount of loan modifications have been approved and significantly enhance the Securitized REST Report.
Our objective is to examine the Shiryaev-Zhou indices of securitized real estate indices of four countries in Europe and North America: US, UK, Canada and Germany, and to verify whether the trading strategy we construct using the Shiryaev-Zhou index can beat the "buy-and-hold" strategy.
eVestmentdiscloses this finding in an April 2013 report on securitized credit.
(2) Credit enhancements are protection, in the form of financial support, to cover losses on securitized assets in adverse conditions (Standard and Poor's 2008).
Global Banking News-April 19, 2011--Barclays names co-head for securitized products(C)2011 ENPublishing - http://www.enpublishing.co.uk
But demand for collateral was exceeding the supply and securitized loans filled the gap.
Taipei, May 25, 2010 (CENS) -- To facilitate flexible maneuvering of government assets, the central government plans to issue, for the first time ever, securitized products based on rental income from government-owned real estates in downtown urban areas, reported Lee Su-der, finance minister, yesterday (May 24).
REMICs are a vehicle by which commercial mortgages are securitized.
While creditors often turn on each other during a workout, the massive number of securitized loans with multiple lenders and third-party servicing firms managing the funds is creating a level of complexity that may take years to sort out, analysts said.