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: to convert (assets) into securities typically by transferring them (as by sale) to a special trust, partnership, or corporation that issues them as securities with a resulting reallocation or reduction of risk and increase in liquidity for the company (as a bank) acting as the sponsor of the transaction see also asset-backed security at security
Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.