securitize

securitize
securitize se‧cur‧i‧tize [sɪˈkjʊərtaɪz ǁ -ˈkjʊr-] also securitise verb [transitive] FINANCE
if a financial institution securitizes loans, it buys the loans from lenders such as banks and uses them as backing for bonds. The financial institution uses the repayments on these loans to make payments to investors who buy the bonds. Money that the lenders get from the financial institution when it sells the bonds is used to improve its financial situation, make more loans to customers etc:

• The company purchases and securitizes mortgages from all over the United States.

— securitization also securitisation noun [uncountable] :

• The government is counting on securitization to help resolve the mortgage problem.

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securitize UK US (UK also securitise) /sɪˈkjʊərətaɪz/ verb [T] FINANCE, STOCK MARKET
to borrow money in the form of bonds which can then be traded on financial markets: »

David Bowie securitized his potential earnings by issuing bonds against the future royalties of his recording catalogues.

securitization (UK also securitisation) noun [U]
»

National Westminster Bank announced the $5 billion securitization of its high-quality corporate loan.


Financial and business terms. 2012.

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Look at other dictionaries:

  • securitize — se·cur·i·tize /si kyu̇r ə ˌtīz/ vt tized, tiz·ing: to convert (assets) into securities typically by transferring them (as by sale) to a special trust, partnership, or corporation that issues them as securities with a resulting reallocation or… …   Law dictionary

  • Securitize — A pooled group of financial assets that together create a new security, which is then marketed and sold to investors. The value and cash flows of the new security are based off of the underlying value and cash flows of the assets used in the… …   Investment dictionary

  • securitize — transitive verb ( tized; tizing) Date: 1981 to consolidate (as mortgage loans) and sell to other investors for resale to the public in the form of securities • securitization noun …   New Collegiate Dictionary

  • securitize — se·cu·ri·tize (sĭ kyo͝orʹĭ tīz ) tr.v. se·cu·ri·tized, se·cu·ri·tiz·ing, se·cu·ri·tiz·es To buy (loans, such as mortgages) from lenders, arrange them in groups, and issue bonds on the groups. * * * …   Universalium

  • securitize — verb To convert assets (typically oustanding loans or other receivables) to securities, usually by selling them with a discount to a financial intermediary, which pools them with other similar assets and sells further as securities to third party …   Wiktionary

  • Securitize —   To aggregate contracts into one pool, which then offers shares for sale in the investment market. This strategy diversifies project risks from what they would be if each project were financed individually, thereby reducing the cost of financing …   Energy terms

  • securitize — or securitise verb [often as adjective securitized] convert (an asset, especially a loan) into marketable securities, typically for the purpose of raising cash. Derivatives securitization noun …   English new terms dictionary

  • securitize — se·cu·ri·tize …   English syllables

  • securitize — …   Useful english dictionary

  • Community Reinvestment Act — The Community Reinvestment Act (CRA, Pub.L. 95 128, title VIII of the Housing and Community Development Act of 1977, 91 Stat. 1147, 12 U.S.C. § 2901 et seq.) is a United States federal law designed to encourage commercial… …   Wikipedia

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