financializing

Converting to securities

Financializing means converting something into a financial instrument or subjecting it to financial market logic.

Housing gets financialized when it becomes primarily an investment vehicle rather than shelter.

Carbon emissions get financialized through trading schemes.

Critics use the term to describe the growing dominance of financial thinking over other values: We've financialized everything from healthcare to higher education.

process

commodification

Transforming into sellable goods

valuation · pricing · marketization · abstraction · quantification · benchmarking · indexing · standardization

mechanisms

securitization

Bundling debts into investable instruments

tranches · swaps · options · futures · hedging · arbitrage · syndication · repos · bundling · repackaging

markets

stocks

Ownership stakes or inventory

commodities · forex · exchanges · indices · ETFs · clearinghouses

outcomes

returns

Profits from investments

  • yieldProduce or relinquish
  • ROIProfit-to-cost ratio
  • dividendsProfits paid to shareholders

liquidity · bubble · volatility · inequality · short-termism

actors

brokers

Transaction intermediaries

quants

Opposites
economic activity orientation

financializingindustrializing

Developing manufacturing capacity

manufacturing · producing · reindustrializing · making · building

abstraction vs. materiality

financializingmaterializing

Becoming real or visible

concretizing · physicalizing · grounding · embodying · substantiating

economic purpose

financializingreindustrializing

Restoring industrial capacity

socializing · humanizing · reinvesting · localizing · collectivizing

Family

finance, finances, financial, financing, financier, financially, financiers, financials, financialize

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Used worldwide · Timeless · Abstract · Rated G