securitized
SEK-yuh-ri-tyzed
Definition
Refers to financial assets or debts that have been bundled together and converted into tradable securities, often sold to investors as investment products.
Etymology
Derived from 'security' in the financial sense of a tradable instrument, combined with the suffix '-ize' to indicate the process of turning an asset into such an instrument. The term gained widespread prominence in the late 20th century to describe the pooling of debt like mortgages into marketable financial products.
In the news
In the context of bond allocation, the author notes that investors might include securitized exposures as part of a diversified portfolio. This helps advisors select a range of income-producing vehicles beyond standard government or corporate bonds.
KENT PATRICK: What a “higher-for-longer” rate environment means now
Read the full article ↗Valdosta Daily Times