Securitization refers to the process of:
A)bonds are sold to the public at a discount.
B)stocks are issued to raise funds instead of bonds.
C)loans and / or receivables are packaged to create new securities.
D)a portfolio of securities is sold to raise funds to pay debts.

Question

Quizplus · Accepted Answer

Securitization is the process of pooling together similar types of loans or receivables, such as mortgages or credit card debt, and then issuing new securities backed by those pooled assets. These new securities can then be sold to investors, providing a way to raise funds for the original issuer of the loans or receivables.

Securitization Refers to the Process Of