securitizations
/sɪˌkjʊrɪtɪˈzeɪʃənz/
noun
- The process of turning a group of loans or other financial assets into securities (bonds or other investments) that can be sold to investors.
- The bank used securitizations to package thousands of home mortgages into bonds for investors.
- Many companies use securitizations to free up cash by selling their future loan payments.
- After the financial crisis, regulators introduced stricter rules for securitizations.