to securitize
4
9.1
- verb
- /sɪˈkjʊərɪtaɪz/
- Specialized
:
securitizar
- The U.S. government also lifted the caps that had prevented the expansion of the agencies' portfolios and allowed them to securitize a broader range of mortgages.
- securitized mortgage
- securitized loans
- securitized debt
So multiple counterparties, when you securitize them, they become bonds.
- So multiple counterparties, when you securitize them, they become bonds.
- Subprime mortgages were securitized and sold to investors using asset backed securities or a BS.
- And by the way, very few loans that banks originate or securitized.
- Rating agencies, when you securitize those loans, loan servicers, loan servicers, so maybe loan servicers may be the rating agencies.
Examples
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For a sample of 24,951 loans originated and securitized between 1993 and 2011, they find that the relation between loan performance and the cap rate spread is negative and statistically significant after controlling for both LTV and DSCR at origination.
Academic text (2016) -
Some investment banks, like Lehman Brothers, got into mortgages, buying them in order to securitize them and then sell them on.
Blog text (25) -
And when we securitize mortgages, that allowed for that switch.
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The problem is: were 1 million properties used to securitize bonds backed by over 1 million properties?
Blog text (21) -
They purchase this mortgage from the small bank, they securitize them and they sell to the public market.
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So multiple counterparties, when you securitize them, they become bonds.
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Few, if any, of the securitized loans were properly transferred.
Blog text (14) -
Well, if you go back to what it used to be and you are securitizing prime mortgages with prime borrowers, it probably is fine.
Blog text (8) -
Indeed, available evidence suggests that borrowers are more likely to default when their mortgage obligations are securitized.
Academic text (2018) -
The company decided to securitize its outstanding loans to improve liquidity and attract investors.
Surface Forms
Morphology
Etymology
The word securitize comes from secure and security, where secure means 'safe' and a security is a financial paper you can sell. So, to securitize assets is to turn loans or receivables into saleable 'securities' that investors can buy.