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Verbriefung

securitisation

noun fer-BREE-foong Rare
People & Society Money

Also means

securitization

Usage Note

Verbriefung is the process of pooling financial assets (such as mortgages or car loans) and issuing tradeable securities backed by them. The misuse of Verbriefungen in the US subprime market contributed to the 2008 financial crisis, making the term politically loaded in Germany.

Examples

"Die Bank nutzte die Verbriefung von Hypothekenkrediten zur Refinanzierung ihres Portfolios."

Natural Translation

The bank used the securitisation of mortgage loans to refinance its portfolio.

Literal Translation

The bank used the securitisation of mortgage-loans to-the refinancing of-its portfolio.

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