Securitization refers to the process of making some of the loa portfolio marketable by establishing pools of loans and selling interest (i.e., securities) in the pool.

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Securitization is the process of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations, and selling their related cash flows to third-party investors as securities, which may be described as bonds, pass-through securities, or collateralized debt obligations (CDOs), depending on the structure of the securitization. This process helps in making illiquid assets more marketable.

Securitization Refers to the Process of Making Some of the Loa