What is securitization?
Career: Securitization
Securitization is a financial process where various types of assets, such as mortgages, loans, or receivables, are pooled together and repackaged into interest-bearing securities. These securities are then sold to investors, allowing the original lenders to access new capital and transfer some of the risk associated with the assets. Securitization is commonly used in the financial industry to improve liquidity, diversify risk, and offer more investment opportunities. It plays a key role in the functioning of modern capital markets.