What is securitization and why are people wary of it ?
This was selected as Best Answer Hi Yaseen, Securitization is when you take a group of assets, put them together into lots, and then selling them in the financial markets as one asset. People are wary of it because it takes a range of risks, and packages it together to have one risk level. It is like going to an auction and buying a packaged lot. There will be one good piece (bait) and some other stuff that you probably wouldn’t buy normally. When you securitize, you can not see the exact nature of the bait, or the other stuff. Hope this answers your question.
