The bundling of mortgages into a saleable security (usually for large institutional investors)is called:
A) disintermediation.
B) futures bundling.
C) hedge packaging.
D) securitisation.

Question

Quizplus · Accepted Answer

The process of bundling mortgages and then selling them as a security to investors is called securitisation. This helps to spread the risk across multiple investors and increases liquidity in the mortgage market.

The Bundling of Mortgages into a Saleable Security (Usually for Large