Knowledge Center

Summary, forum, best practices, expert tips and information sources.



What is Securitization? Meaning.

Securitization is a financial technique that pools assets together by turning future cash flows into tradable, bond-like securities. Creating such asset-backed securities became a lucrative business for financial firms during the 1990s.

Benefits of Securitization:

  • Businesses ("Issuers") can immediately realize the value of a cash-producing asset and get instant access to money for which they would otherwise have to wait months or years, and they can shed some of the risk that their expected revenue will not materialize.

  • By selling securitized loans, investment banks are able to finance their customers without tying up large amounts of capital.

  • Investors can hold a new sort of asset, less risky than unsecured bonds, giving them the risk-reducing benefit of diversification.

However there is always a risk that the future cash flows underlying the securities may flow earlier or later than promised, or not at all.

Special Interest Group


Securitization Special Interest Group.

Special Interest Group (41 members)


New Topic

Forum about Securitization.

Synthetic Securities
WHAT IS A SYNTHETIC SECURITY? A synthetic security is a cash flow stream created from a combination or decomposition of (...)
1 reactions
Quotes on Securitization. Quotations
Hi, do you know of a remarkable, humorous quote by a famous person or a proverb related to securitization?Please enter a (...)
0 reactions
🔥 NEW Financial Engineering. Tools
WHAT IS FINANCIAL ENGINEERING? Financial Engineering (FE) involves the design, development and the implementation of in (...)
0 reactions
Best Practices

Sign up

The top-rated topics about Securitization. Here you will find the most valuable ideas and practical suggestions.

Expert Tips

Sign up

Advanced insights about Securitization. Here you will find professional advices by experts.

Information Sources

Sign up

Various sources of information regarding Securitization. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.


Compare also: Intangible Assets

Special Interest Group

Are you interested in Securitization? Sign up for free

Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this knowledge center

Copy this HTML code to your web site:


Return to Management Hub: Finance & Investing

More on Management  |  Return to Management Dictionary  | 


This ends our Securitization summary and forum.

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2021 12manage - The Executive Fast Track. V15.7 - Last updated: 26-1-2021. All names of their owners.