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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
Another issue related to securitization concerns the measure and concentration of risk that the banks involved in origination actually take on.
Financial innovation, such as mortgage securitization, was on balance beneficial and excesses were likely to be self-regulated.
If mortgage securitization is snake oil, then it was snake oil that was patented and marketed by the U. S. government.
However, securitization may not get a lender completely off the hook in the eyes of credit analysts.
So, flush with cash from the power plant sales and the securitization, Judge went shopping.
Our mortgage securitization activities also help to ensure there is an ample supply of low-cost funding for housing.

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