______________ refers to the process of pooling a group of assts with similar features and issuing securities that are collateralized by the assets.

Question

Quizplus · Accepted Answer

Securitization refers to the process of pooling assets with similar features and issuing securities that are collateralized by the assets. This can be done with a variety of assets, including mortgages, credit card receivables, and auto loans. The securities issued are typically divided into different tranches, with each tranche having its own level of risk and expected return. Securitization allows the issuer of assets to access additional funding by selling securities to investors, while also diversifying risk among the investors.

______________ Refers to the Process of Pooling a Group of Assts