When a financial intermediary repackages loans and other traditional bank-based credit products into securities that can be sold to public investors we call that

Question

Quizplus · Accepted Answer

Securitization is the process where a financial intermediary bundles individual loans, mortgages or other bank credit products, reformats them into a single security or series of securities, and sells them to investors. This process provides liquidity to financial markets and reduces risk for banks.

When a Financial Intermediary Repackages Loans and Other Traditional Bank-Based