Dictionary

securitize en · VERB

Etymology

Etymology tree English security Proto-Indo-European *-id- Proto-Indo-European *-yéti Proto-Indo-European *-idyéti Proto-Hellenic *-íd͏̌d͏̌ō Ancient Greek -ῐ́ζω (-ĭ́zō)bor. Late Latin -izōder. Middle French -iserbor. Middle English -isen English -ize English securitize From security (“tradeable financial asset”) + -ize.

Meanings

1. To convert assets or claims (typically outstanding 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 investors.
   • Once the private sector had discovered securitization, it securitized any claim imaginable, from residential mortgages to receivables for products and services from cars to credit cards and student loans; the original policy goal of lowering the costs of credit for homeowners gave away to minting as much private money (or debt) as investors demanded. 2020, Katharina Pistor, “4: Minting Debt”, in The Code of Capital […] , Princeton University Press, →ISBN:

Forms

Deriveds

securitizer · resecuritize · securitization

Relateds

asset-backed security

Translations (4)

fr titriser (to convert assets to securities) · fi arvopaperistaa (to convert assets to securities) · ga urrúsaigh (to convert assets to securities) · de verbriefen (to convert assets to securities)