Asset Securitization
/ˈæsɛt ˌsɪkjʊrətaɪˈzeɪʃən/
Definitions
- (n.) A financial process in which assets are pooled and their cash flows repackaged into securities sold to investors, transferring risk away from the original owner.
The company used asset securitization to raise capital by selling mortgage-backed securities.
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Commentary
Commonly used in finance law, asset securitization involves complex documentation to ensure legal transfer of assets and risk. Clarity in defining the asset pool and trustee roles is critical.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.