Securitization is the unbundling and repackaging of hard-to-trade financial assets into liquid financial instruments.

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Securitization involves breaking down illiquid financial assets into smaller, more marketable pieces, which are then sold as tradable securities to investors. This process increases the liquidity and accessibility of these assets, and can be done with a variety of assets such as mortgages, credit card debt, and auto loans.

Securitization Is the Unbundling and Repackaging of Hard-To-Trade Financial Assets