securitization
/sɪˌkjʊrɪtɪˈzeɪʃən/
noun
- The process of turning loans, debts, or other financial assets into securities (like bonds) that can be sold to investors.
- After the financial crisis, regulators introduced stricter rules for securitization of car loans.
- Securitization allows companies to raise cash by selling packages of their customer debts.
- The bank used securitization to bundle thousands of home mortgages into bonds for investors.