Securitisation

Securitisation is the financial practice of pooling illiquid asset types, such as residential mortgages, and converting them into marketable securities through the sale of mortgage-backed securities to various private and institutional investors.

Securitisation is accepted as a viable enhancement to standard financing techniques and has been adopted by a broad range of institutions including banks, credit unions, building societies, housing co-operatives and mortgage originators, as well as trading and industrial corporations.