European Finance Observatory

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Securitisation

Securitisation is the operation by which a lender pools loans it has made (mortgages, car loans, loans to companies) and sells the right to their repayments to investors as securities, in slices that absorb losses in a set order. The lender frees capital to lend again. In the EU it is governed by the 2017 Securitisation Regulation.

Also written as securitization · asset-backed securities

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Updated 1 Nov 2026.