Resecuritization | Financial Definitions | Definitive Real Estate Definitions

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As defined and explained in this ONLINE Encyclopedia

The packaging of a number of existing securitized debt obligations into a new tradable security. Securitized debt obligations may be packaged together either as a collection of similar obligations (collateralized mortgage obligations (CMOs), real estate mortgage investment conduits (REMICs), or commercial mortgage-backed securities (CMBSs)), or in the form of a diversified or mixed class of obligations (credit card loans and mortgage loans). As a rule classes of assets or loans are kept together to assist risk assessment, but creating 'multisector' pools of structured assets in order to provide diversification has become more prevalent. A pool of securitized debts is generally referred to as a collateralized debt obligation (CDO), although a multi-sector securitized pool of debts is also a CDO. Nearly all forms of asset-backed securities (ABSs) and mortgaged-backed securities (MBSs) have found their way into resecuritized CDOs. Also referred to as CDO squared or CDOn, especially when the securitized obligation comprises a variety of underlying obligations (e.g. a number of packages of mortgage loans, car loans and credit card debts, or a mixture of such obligations).  See also mortgage-backed obligation/mortgage-backed security, securitization.

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More Real Estate Terms
acceleration clause; bargain and sale; base fee; easement; emphyteotique lease; exclusive agency; fructus(Lat);
grosses reparations(F); highest and best use; home valuation code of conduct (HVCC)(US); immeuble(F); leasehold enfranchisement; market value (MV); once a mortgage, always a mortgage; partial release (or the rule in Dumpor's Case); possession; resulting trust (and Quistclose trust); strata title; tenantable repair; Torrens title; unjust enrichment; waste