Which of the following is the packaging and transferring of insurance risks to the capital markets through the issuance of a financial security?

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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 (CDOs). In the context of insurance risks, this process involves the creation of financial instruments that allow for the transfer of insurance risk to the capital markets, thereby providing insurers with a mechanism to manage risk exposure.

Which of the Following Is the Packaging and Transferring of Insurance