Securitization is the process of taking an illiquid asset, or group of assets, and through
financial engineering, transforming it (or them) into a security.
Securitization is the financial practice of pooling various types of contractual debt such as
residential mortgages, commercial mortgages, auto loans or credit card debt obligations
(or other non-debt assets which generate receivables) and selling their related cash flows
to third party investors as securities, which may be described as bonds, pass-through
securities, or collateralized debt obligations (CDOs).