asset securitization
[/ˈæset ˌsɪkjərɪtaɪˈzeɪʃən/]
nounpl: asset securitizations
securitização de ativos
1. A financial process in which illiquid assets (such as loans, mortgages, or receivables) are converted into marketable securities that can be sold to investors
The bank used asset securitization to convert its mortgage portfolio into investment-grade securities.
O banco utilizou securitização de ativos para converter sua carteira de hipotecas em títulos de grau de investimento.
2. The practice of aggregating various types of contractual debt (such as mortgages, bonds, loans) and selling the consolidated debt as bonds-backed securities to various investors
Asset securitization allows financial institutions to free up capital and reduce their exposure to credit risk.
A securitização de ativos permite que instituições financeiras liberem capital e reduzam sua exposição ao risco de crédito.
Asset securitization became particularly prominent in Brazilian financial markets after regulatory reforms in the 1990s-2000s. It plays a crucial role in Brazil's credit market and infrastructure financing. The 2008 financial crisis made this term more widely known due to its association with mortgage-backed securities crisis. In Portugal and Europe, the term 'titularização' is preferred and is regulated under specific EU directives.
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