The process of bundling loans together and selling them on the market as financial assets is called:

Question

Quizplus · Accepted Answer

Securitization is the process of bundling loans together and selling them on the market as financial assets. This was a common practice leading up to the 2008 financial crisis, where mortgages were bundled and sold as mortgage-backed securities. This helped to spread risk throughout the financial system, but also contributed to the collapse of many financial institutions when the housing market crashed.

The Process of Bundling Loans Together and Selling Them on the Market