Securitization

Securitization is financing technique allowing the holders of financial assets to reconstruct those assets into securities, which are then sold to outside investors. It can also be described as:
* the creation of liquid assets out of illiquid assets;
* the technique of rising funds through the agency of securities;
* the carefully structured process whereby loans and other income producing assets are packaged, underwritten and sold in the form of asset-backed securities, which are typically secured by the underlying pool of assets.