A package of nontraded financial instruments can be transformed into a traded financial instrument through the process of

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Securitization is the process of turning a package of nontraded financial instruments into a traded financial instrument. This involves bundling together similar assets, such as mortgages or car loans, and creating a tradable security backed by these assets. The securitized instrument can then be traded on a secondary market, providing investors with more liquidity and a wider range of investment opportunities. Collateralization involves using an asset as collateral to secure a loan, repurchasing involves buying back previously sold securities, and underwriting involves a financial institution guaranteeing the sale of securities. None of these processes directly relate to the transformation of nontraded financial instruments into tradable instruments.

A Package of Nontraded Financial Instruments Can Be Transformed into a Traded