securitize

present singular third person securitizes · participle present securitizing · participle past securitized · past securitized

1. businessTo convert assets or claims (typically outstanding loans or other receivables) to securities, usually by selling them with a discount to a financial intermediary, which pools them with other similar assets and sells further as securities to third-party investors.

   1 more example

   Once the private sector had discovered securitization, it securitized any claim imaginable, from residential mortgages to receivables for products and services from cars to credit cards and student loans; the original policy goal of lowering the costs of credit for homeowners gave away to minting as much private money (or debt) as investors demanded.

   2020, Katharina Pistor, “4: Minting Debt”, in The Code of Capital […] , Princeton University Press, →ISBN