verb
- converts assets or debts into securities that can be traded on financial markets
Usage: finance; third person singular present
Examples
- The bank securitizes mortgages by pooling them together and selling them as bonds.
- When a company securitizes its receivables, it can access cash more quickly.
- The financial institution securitizes auto loans to reduce risk on its balance sheet.
- By securitizing these assets, the lender transfers credit risk to investors.
- The process securitizes individual loans into tradeable investment products.
- Wall Street securitizes various types of debt to create new financial instruments.