securitizes

Converts to bonds

Securitizes is the third-person singular of securitize, meaning to convert assets into tradeable securities.

Banks securitize mortgages by bundling them into investment products that can be sold: The lender securitizes its home loans and sells them to investors.

The practice became notorious during the 2008 financial crisis, when securitized subprime mortgages collapsed in value.

structured-finance

asset-backed

Secured by underlying property

mortgage-backedBacked by home loans
collateralizedBacked by pledged assets
tranchesPortions of a whole

pooling · bundling · slicing · originator · servicer · issuer · waterfall · senior · mezzanine · subordinated

Opposites

financial structure transformation

securitizesliquidates

Converts assets to cash

unwinds · dissolves · redeems · cashes out · pays off

asset holding strategy

securitizesretains

Continues to possess

warehouses · internalizes

asset pooling vs. separation

securitizesunbundles

Sells components separately

separates · disaggregates

Family

securitize, securitization, securitized

Familiarity: Top 1,000,000
Profile: Used worldwide · Timeless · Abstract · Rated G