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have you ever wondered how Banks and financial institutions manage to recover money quickly while giving out loans let me introduce you to securitization securitization is a process where financial institutions take a bunch of loans or receivables Like Home Loans car loans or credit card dues and package them into a financial product called a security this security is then sold to investors like mutual funds insurance companies or even individuals in return the Bank gets immediate cash to lend more while investors earn money from the loan repayments made by the borrowers why does it matter securization improves cash flow for banks and spreads the risk among investors it's a win-win for everyone in the financial ecosystem if you want to learn more about financial laws or how securitization Works follow Nava legal for more insights [Music]

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