________ is creating a marketable capital market instrument by bundling a portfolio of mortgage or auto loans.

Question

Quizplus · Accepted Answer

Securitization involves bundling a portfolio of loans and creating a marketable capital market instrument from it. This process involves creating securities, such as mortgage-backed securities (MBS) or asset-backed securities (ABS), which investors can trade on secondary markets. The process of securitization helps to increase liquidity in financial markets and can also help to reduce risk for lenders by diversifying their loan portfolios.

________ Is Creating a Marketable Capital Market Instrument by Bundling