Definitions

from The American Heritage® Dictionary of the English Language, 4th Edition

  • transitive v. To buy (loans, such as mortgages) from lenders, arrange them in groups, and issue bonds on the groups.

from Wiktionary, Creative Commons Attribution/Share-Alike License

  • v. To convert assets (typically oustanding 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.

Etymologies

Sorry, no etymologies found.

Examples

  • "securitize" -- those loans and then, through the activities of the underwriter defendants, sell them to investors as purportedly investment grade mortgage-backed securities.

    KTVZ.com - Local Headlines

  • The delegates, in their wisdom, voted by big supermajority margins to endorse Prop 1B, which carves out big bucks for the education budget, and Prop 1C, which would "securitize" future lottery earnings to provide billions more in revenue.

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  • She later used the word "securitize" in the the same sentence.

    United Methodists want to show that church is a verb, not a noun | RELIGION Blog | dallasnews.com

  • In Europe, the covered-bond market has grown to $2.75 trillion, but U.S. banks haven't used them much, in large part because they can get "securitize" mortgages -- that is, take them off their balance sheet by repackaging them as mortgage-backed securities that are then sold to investors -- and they can obtain advances from the Federal Home Loan Banks.

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  • Here are just a few:At the behest, or insistence, of the Bush administration, the governing elites of the other two countries have worked rapidly to "securitize" the region which, at least in Mexico, has translated into increased militarization.

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  • The company says it is negotiating with institutional investors to "securitize" pools of transfer fees -- essentially creating bonds based on future cash flows that can be sold to deep-pocket money managers.

    The Real Deal New York - Latest News

  • The investors then bundle the mortgages, "securitize" them (that is, issue bonds - mortgage-backed securities), and sell off the securities to other institutional investors all over the world.

    Say Anything

  • Take a group of mortgage loans, most of them squishy with impending failure and pungent with ripening fraud; "securitize" them into a bond; then place that bond between two mirrors that face each other in such a way that the mutual reflections appear to trail off into infinity.

    LewRockwell.com

  • But Wall Street's plan to "securitize" financial product is said to be one ...

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  • Later in the process, auto lenders commonly "securitize" loans into so-called asset-backed securities.

    BNET Articles

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