Debtfree Issue 202303 - DB SE
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DEBT REVIEW AND YOUR CREDIT SCORE<br />
<strong>SE</strong>CURITISATION<br />
WHAT IS IT?<br />
When you put your money in a bank,<br />
the bank uses that money to make<br />
loans and investments. Sometimes,<br />
the bank might take some of the<br />
loans and investments they’ve made<br />
and package them together into<br />
something called a "security".<br />
A security is basically a bundle of loans or<br />
investments that are sold to other people or<br />
organizations in order to raise money.<br />
For example, let’s say that a bank has made<br />
various home loans to clients. The bank might<br />
take a bunch of those loans and bundle them<br />
together into a security called a "mortgagebacked<br />
security". Then they will sell shares of<br />
that security to investors.<br />
When someone buys a share of a bank<br />
security, they become part-owner of that<br />
bundle of loans or investments. They’ll get
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