I- Definition

• 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).