Securitization is the process of grouping together loans, mortgages, bonds, and other debts into new securities that can be sold to investors. This process is often used by banks and other financial institutions to free up capital and manage risk. The new securities are typically backed by the underlying assets, such as the mortgages or loans, and investors in the securities receive payments based on the cash flows from those assets.

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Securatization Is

Question 76

Multiple Choice

Securatization is:

A) the process of slicing up and bundling groups of loans,mortgages,corporate bonds and other financial debts into distinct new securities.
B) the securing of loans,mortgages,corporate bonds and other financial debts by governments.
C) a guarantee that loans,mortgages,corporate bonds and other financial debts were secure.
D) the process of securing loans,mortgages,corporate bonds and other financial debts by insurance companies.

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