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What is securitized debt?

Updated: 4/28/2022
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15y ago

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I'll try to be as brief as possible. A securitized debt is a debt (let's say a loan) that is broken down into various bonds and sold. For example, a $100MM loan could be broken down into 1,000 bonds with a face value of $100K each. Of course, this typically is a "pool" of loan totaling $100MM and the bonds sold can range anywhere from $1,000 on up depending on how the underwriter breaks everything out.

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