Q&A: What is securitization in finance?

Question by aayntu: What is securitization in finance?
I’m learning about securitization in my finance class right now, but I have a weak grasp of what it really is. Can someone please give me a simple definition of securitization and the process of it?

Best answer:

Answer by ldjamieson
It is basically taking a bunch of financial products, packaging them under some form of contract as a new financial product (a security) and selling it. Making a security out of something is securitization.

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