The packaging of loans into asset pools and then selling portions of the pool to investors is known as

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Securitization refers to the process of packaging loans into asset pools and then selling portions of the pool to investors. This is a common practice in the financial industry, particularly in the mortgage and auto loan markets. The goal of securitization is to create a new security that is backed by the assets in the pool, which can then be sold to investors who are looking for a specific type of investment. Securitization allows lenders to free up capital that would otherwise be tied up in loans, which in turn can lead to increased lending and economic growth.

The Packaging of Loans into Asset Pools and Then Selling