Securitisation is a way of turning illiquid assets into securities that can be traded on the market. This allows businesses to raise money by selling off their assets, without having to give up ownership of them.
For example, a bank might securitise a pool of mortgages. This means that the bank would sell off the mortgages to investors, who would then own the payments made by the borrowers. The bank would still be responsible for collecting the payments, but it would no longer have to hold the mortgages on its balance sheet.
Securitisation can be a way for businesses to raise money quickly and easily.