securitize
verbEtymology From security (“tradeable financial asset”) + -ize.
1
Business, Finance To 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.
- 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:
- Derived terms
- resecuritize, securitization, securitizer
- Related terms
- asset-backed security