Securitization

{
  "id": "MLC-T-INS-003043",
  "term": "Securitization",
  "field": "Insurance and risk management",
  "definition": "The process of pooling contractual debts, such as mortgages, auto loans, or credit card receivables, and selling them as marketable securities to investors. This transforms illiquid assets into liquid financial instruments, allowing originators to transfer credit risk and raise capital. The securities are often structured into tranches with different risk and return profiles.",
  "subject": "Management Liability",
  "url": "https://mlchart.com/terminology/insurance/securitization/"
}