Securitization
/ˌsɪkjʊərətaɪˈzeɪʃən/
Definitions
- (n.) The process of pooling various types of debt and selling them as consolidated financial instruments to investors.
The bank used securitization to convert mortgages into marketable securities.
- (n.) A financial technique that enhances liquidity by converting assets into tradable securities.
Securitization helped the company improve its cash flow by unlocking asset value.
Forms
- securitisation
Commentary
Securitization often requires careful drafting of pooling and servicing agreements to define rights and responsibilities clearly.
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.