Securitization

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Definition:
Securitization is the process of taking an illiquid asset like mortgage or credit card debt and selling that debt as a package or security. These new securities are backed by the claims against the mortgage and credit card holders. Structured Finance teams then structure these loans into various classes or tranches that are rated by a rating agency before selling the newly structured products to investors.

Related Concepts:

Catastrophe bonds
Pooling
Special Purpose Vehicle
Tranches
 

Available Positions Related to Securitization:

Corporate Finance jobs

Investment Banking jobs

Mergers & Acquisitions jobs

 

Relevant Functional Areas:
Broker Dealer
Capital Markets
Corporate Finance
Investment Banking
Legal
Structured Finance
 

Related Job Titles:
Credit Risk
General Counsel
Structuring
Underwriter
 

Synonyms:
Securitisation

 

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