- The process of transforming assets into marketable securities. This is often done via sale to a trust, partnership, or corporation that consequently issues them as securities. This technique commonly results in reduced risk and improved liquidity for the entity (like a bank) orchestrating the procedure
- The financial institution decided to securitize its mortgages to improve its liquidity position.
- To attract more investors and diversify risk, the bank decided to securitize its loan portfolio.
- The process of securitization allowed the company to convert its illiquid assets into tradeable securities.