Securitization is the practice of:

Question

Quizplus · Accepted Answer

Securitization involves bundling individual debts (such as mortgages, credit card loans, car loans, etc.) into a single package and creating a new financial asset, which can be sold or traded on financial markets. This process makes it easier for lenders to raise funds, as they can sell off their loans rather than holding them on their own balance sheets. It also allows investors to gain exposure to a diversified pool of loans.

Securitization Is the Practice Of