Securitize

Pronunciation: /sɪˈkjʊrəˌtaɪz/

Securitize (verb)

  1. To change loans or other payments into tradable financial products, so investors can buy them.
  2. To group future income streams and issue securities backed by those payments.

Examples

  • Banks securitize debts to create tradable bonds.
  • The company securitizes loans so investors can buy bonds.