_____ occurs when financial institutions assemble pools of loans and sell shares in the income from these pools.

Question

Quizplus · Accepted Answer

Securitization occurs when financial institutions bundle loans together and sell shares of the income generated by those loans. This process is used to transfer risk away from the originating institution and onto the investors who purchase the securities backed by the loans.

_____ Occurs When Financial Institutions Assemble Pools of Loans and Sell