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What is a securitization?

What is a securitization? Here are some definitions.

Noun
  1. (commerce, finance) The fact or process of securitizing assets; the conversion of loans into securities, usually in order to sell them on to other investors.
  2. (counterterrorism) The act of taking visible countermeasures against terrorism.
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Examples
Indeed, when junk bonds and risky securitization issues go wanting, such risky loans are increasingly funneled through asset-backed conduit programs.
Structured finance, or securitization, has become the grease that keeps capital markets spinning.
Another issue related to securitization concerns the measure and concentration of risk that the banks involved in origination actually take on.
The Company remains exposed to certain risks of default on the amount of receivables under securitization.
Our mortgage securitization activities also help to ensure there is an ample supply of low-cost funding for housing.
If mortgage securitization is snake oil, then it was snake oil that was patented and marketed by the U. S. government.

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