securitization
6
8.4
- noun
- /sɪˌkjʊərɪtəˈzeɪʃən/
- Specialized
- Another very important innovation is securitization of mortgages and government support of mortgage markets.
- securitization issues
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Watch on YouTubeThe process of securitization, which you know, at its core, I think is a, is a has value and is a, a good thing.
- The process of securitization, which you know, at its core, I think is a, is a has value and is a, a good thing.
Examples
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The process of securitization allows banks to convert loans into marketable securities for investors.
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By 2008, home foreclosures were skyrocketing and the securitization food chain imploded.
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I think we are stuck with securitization whether we like it or not.
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The problem with the securitization market right now is that nobody trusts it.
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Added a note about securitization and how banks were exposed by these complex instruments.
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But do you have any concerns about the performance of the underlying securitizations?
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The last financial crisis can be blamed in large part on runaway securitization.
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We've since developed securitization, whereby people who make the loan are no longer at risk if they fail to repay.
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One of the practical consequences of increased securitization is the constrained ability of lenders to modify mortgage loans.
Academic text (2018) -
The new rules will apply to all securitizations, including those guaranteed by Fannie Mae or Freddie Mac.
Blog text (6)
Surface Forms
Morphology
securitization = securitize (transparent) = security + ize + ation
Standard derivation from 'security' to the verb 'securitize' and noun formation with '-ation' yields the financial meaning directly.
Etymology
The word securitization comes from security, which also names a financial 'security' like a bond or stock, and the ending -ization meaning 'making into'. So in finance, securitization is the process of turning loans or other assets into 'securities' that can be sold to investors.