How Do You Spell SECURITISATION?

Pronunciation: [sɪkjˌʊ͡əɹɪta͡ɪzˈe͡ɪʃən] (IPA)

The word "securitisation" is spelled with the letter combination "-ti-" in the middle, which can be tricky for some to pronounce correctly. The IPA phonetic transcription of this word is sɪˌkjʊrɪtaɪˈzeɪʃən, which breaks down the pronunciation of each syllable. The "ti" sound is pronounced as "sh" followed by a short "i" sound, giving the word its unique spelling. This word refers to the process of transforming loans or other financial assets into securities that can be bought and sold on the financial markets.

SECURITISATION Meaning and Definition

1. Securitisation is a process wherein illiquid assets, such as loans, mortgages, or receivables, are transformed into tradable securities. It involves pooling these assets together to create a financial instrument called a security, backed by the cash flows generated from the underlying assets. These securities are then sold to investors in the financial markets.

   The primary goal of securitisation is to enhance the liquidity of assets and provide an additional funding source for financial institutions. By converting these assets into tradable securities, financial institutions can sell them to investors who are willing to invest in a diversified portfolio of assets.

   Securitisation involves several steps. Firstly, the originator, typically a bank or a financial institution, identifies a pool of eligible assets that possess similar characteristics. These assets are then transferred to a special purpose vehicle (SPV), a separate legal entity created solely for the purpose of securitisation. The SPV issues bonds or other types of securities to investors in exchange for the cash flow generated from the underlying assets.

   Investors who purchase these securities are entitled to receive the cash flows generated by the underlying assets. This process reduces the risk exposure of the originator, as it transfers the credit risk associated with the assets to the investors. In addition, securitisation allows financial institutions to free up capital tied to these assets, enabling them to further expand their lending activities.

   Overall, securitisation plays a crucial role in the modern financial system by transforming illiquid assets into tradable securities, enhancing liquidity, and diversifying investment opportunities.

Common Misspellings for SECURITISATION

• aecuritisation
• zecuritisation
• xecuritisation
• decuritisation
• eecuritisation
• wecuritisation
• swcuritisation
• sscuritisation
• sdcuritisation
• srcuritisation
• s4curitisation
• s3curitisation
• sexuritisation
• sevuritisation
• sefuritisation
• seduritisation
• secyritisation
• sechritisation
• secjritisation
• seciritisation

Etymology of SECURITISATION

The term "securitisation" originated from the word "security". The etymology of "security" traces back to the Latin word "securitas", which can be further broken down into two parts: "se" meaning "without" and "cura" meaning "care". In Latin, "securitas" referred to a state of being free from worry or care, which eventually evolved to mean "safety" or "protection".

The modern usage of "securitisation" emerged in the financial world during the late 20th century as a process of transforming illiquid financial assets, such as loans or mortgages, into marketable securities. This allowed financial institutions to free up capital by selling these securities to investors.

Plural form of SECURITISATION is SECURITISATIONS