The process of packaging promissory notes and negotiating their sale to investors is called __________.
A) guarantor
B) seller
C) securitization
D) None of the choices are correct.

Question

Quizplus · Accepted Answer

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.

The Process of Packaging Promissory Notes and Negotiating Their Sale