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Breakfast Business with Joe Lynam

What is securitisation?

07 Nov 2024

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Securitization is the financial alchemy of taking not easily or non tradable assets, pooling them together, and selling tradable shares or securities in that pool to investors. Many people blame securitisation for the financial crisis of 2007 as many worthless mortgages had been included and given a much higher value by the ratings agencies. Now there are moves afoot to restart the use of securitisation in Europe in order to create a capital market union and boost private sector investment. Needless to say there are detractors. Joe spoke to Julia Symon is Head of Research and Advocacy with Finance Watch.

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