![Banner image showing a man working with his laptop](/sites/default/files/styles/size390x268/public/2023-02/GettyImages-1358691778_0.jpg?itok=77gx6R6X)
Securitization: A Tool for Issuers to Reallocate Credit Risk and Widen the Investor Base
Securitization is a useful tool to deal with risk aversion for all players in capital markets. It’s the process of pooling various types of cash-flow generating assets, such as mortgages or loans, repackaging them and selling them as securities and, most importantly, offering different level of risk to buyers.