securitize

(redirected from securitizes)
Also found in: Financial.

se·cu·ri·tize

 (sĭ-kyo͝or′ĭ-tīz′)
tr.v. se·cu·ri·tized, se·cu·ri·tiz·ing, se·cu·ri·tiz·es
To transfer (a group of loans, receivables, or other illiquid assets) to a separate company and issue tradable securities based on those assets.

se·cur′i·ti·za′tion (-tĭ-zā′shən) n.

securitize

(sɪˈkjʊərɪtaɪz) or

securitise

vb (tr)
(Banking & Finance) finance to reduce the risk of (a loan) by the use of such securities as eurobonds
Translations
arvopaperistaa
References in periodicals archive ?
However, in the asymmetric information context, holding a subordinate claim gives the bank the stake that can motivate it to screen the loans carefully before it securitizes them and to continue monitoring the loans after it securitizes them.
Saxon also purchases, originates and securitizes non-prime residential mortgages; its mortgage loan portfolio totaled $6.5 billion at March 31, 2006.
The offshore company securitizes the risk, thereby pushing the risk to investors and retaining none for itself.
A mortgage banking enterprise that acquires mortgage servicing rights through either the purchase or origination of mortgage loans and sells or securitizes those loans with servicing rights retained should allocate the total cost of the mortgage loans to the mortgage servicing rights and the loans (without the mortgage servicing rights) based on their relative fair values if it is practicable to estimate those fair values.
By creating a process, or "pipeline," that continually originates and securitizes assets, thereby removing them from the balance sheet, a banking organization can use its systems and loan expertise to originate loans that otherwise might not be made.
Freddie Mac is the nickname for the Federal Home Loan Mortgage Corporation that purchases residential mortgages, securitizes them, and sells them to investors to provide lenders with funds for new homebuyers.