• General Definition
The securitization is a financial technique which changes non-liquid
assets into liquid stocks (bonds or not). An asset for which
an efficient market exists, which enables the investor to sell
or buy at any time, is said to be liquid, while an asset for
which no efficient market exists is said to be non-liquid.
• Scholar definition
Securitization is generally defined as being the operation that
consists in changing a claim (or a non-liquid asset) into stocks.
This claim that constitutes an asset is transferred to a third
part which pays the price to the assignor; the first is in charge
of putting the asset on funds markets in the form of real estate
values. The main thing is that this transfer enables to separate
the asset of the risks associated to the assignor in order to
immunize it in case of his eventual insolvency (« bankruptcy
remoteness » is the key of Securitization).