# Securitization

*Markets & Instruments — Finicade finance glossary*

Bundling many loans — mortgages, car loans, card debt — into a single security that's sold to investors, who receive the borrowers' repayments. It spreads risk, but can also hide it, as 2008 showed.

**Also known as:** securitisation, abs and mbs

**Related terms:** [Tranche](https://finicade.com/glossary/tranche), [Credit Risk](https://finicade.com/glossary/credit-risk), [Tranche](https://finicade.com/glossary/tranche)

**Taught in:** Charter Climb — Securitization

Source: https://finicade.com/glossary/securitization