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

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Securitization is the process of transforming illiquid assets into marketable securities. This process involves a financial intermediary, such as an investment bank, re-packaging loans and other traditional bank-based credit products into securities that can be sold to public investors. This allows banks and other financial institutions to free up capital that would otherwise be tied up in loans, while also providing investors with a new class of investment opportunities.

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