Securitization

Business / Finance / Securitization: Creating a more or less standard investment instrument such as the mortgage pass-through security, by pooling assets to back the instrument. Also refers to the replacement of nonmarketable loans and/or cash flows provided by financial intermediaries with negotiable securities issued in the public capital markets.

Mortgage-Backed Security

Business / Taxes / Mortgage-Backed Security: Mortgage-backed securities are created when the sponsor buys up mortgages from lenders, pools them, and packages them for sale to the public, a process known as securitization. The securities are avai MORE

Jumbo Loan

Business / Finance / Jumbo Loan: Loans of $1 billion or more. Or, loans that exceed the statutory size limit eligible for purchase or securitization by the federal agencies. MORE

Risk Transfer

Business / Finance / Risk Transfer: The shifting of risk through insurance or securitization of debt because of risk aversion. MORE

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