Definition

The process of turning loans or other assets into securities that can be sold to investors.

Example

The bank engaged in securitization to improve its liquidity and attract more investors.

Conversation

Have you heard about the process of securitization in finance?

Yeah, I think it has something to do with turning loans into securities, right?

Exactly! It's a way for banks to manage their assets more efficiently.

That makes sense; it seems like a smart move for investors too.

Synonyms & Antonyms

Root Explanation

Securitization → It is formed from "securus" (from Latin, meaning safe or secure) and the suffix "-ization" (meaning the process of making or becoming). The word "securitization" refers to the process of making something secure, particularly in a financial context where assets are converted into securities.

Memory Tip

Think of the word 'secure' which means safe, and remember that 'securitization' is the process of making something safe or secure, especially in finance.

Visually Confused Words