securitize

verb

se·​cu·​ri·​tize si-ˈkyu̇r-ə-ˌtīz 

-ˈkyər-

securitized; securitizing

transitive verb

: to consolidate (something, such as mortgage loans) and sell to other investors for resale to the public in the form of securities

securitization

si-ˌkyu̇r-ə-tə-ˈzā-shən 

-ˌkyər-

noun

Examples of securitize in a Sentence

Recent Examples on the Web

Its choices, laid out by Vince and the team at Dentons, were to declare bankruptcy or to securitize the $908.2 million debt by issuing bonds and paying them off over 28 years, thus saving the utility and easing the blow on customer bills. —Llewellyn King, Forbes, 2 Nov. 2024

Courtesy of Fannie Mae Started during the Great Depression, Fannie Mae today buys mortgages from lenders, securitizes them, and sells them to investors. —Emma Hinchliffe, Fortune, 20 Mar. 2024

Student loan debt Student loans owned and securitized 2017201820192020202120222023 $1.2T$1.4T$1.6T$1.8T 11. —Abha Bhattarai, Washington Post, 23 Dec. 2023

Basic functions—from the management of immigration to the construction of government facilities to community policing—have become heavily securitized, as have aspects of everyday life: travel, banking, identification cards. —Ben Rhodes, Foreign Affairs, 24 Aug. 2021

Word History

First Known Use

1981, in the meaning defined above

Legal Definition

securitize

transitive verb

se·​cur·​i·​tize si-ˈkyu̇r-ə-ˌtīz 

securitized; securitizing

: to convert (assets) into securities typically by transferring them (as by sale) to a special trust, partnership, or corporation that issues them as securities with a resulting reallocation or reduction of risk and increase in liquidity for the company (as a bank) acting as the sponsor of the transaction see also asset-backed security at security

securitization

si-ˌkyu̇r-ə-tə-ˈzā-shən 

noun