The practice of creating marketable debt instruments that are backed by otherwise illiquid assets is known as ________.

Question

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Securitization involves creating marketable securities that are backed by otherwise illiquid assets such as mortgages, loans, and other receivables. This allows for the pooling of assets and sale of securities to investors, thereby increasing liquidity in the market. Standardization and homogenization refer to the process of making assets more similar and interchangeable, whereas adverse selection is a phenomenon where higher-risk individuals or assets are more likely to be selected for a particular transaction.

The Practice of Creating Marketable Debt Instruments That Are Backed