What Does Risk Securitization Mean?

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What does Risk Securitization mean? Read on to discover the definition & meaning of the term Risk Securitization - to help you better understand the language used in insurance policies.

Risk Securitization

Risk Securitization

The use of a debt or equity instrument (security) to finance risk, using a risk index to value the security and/or a specified loss event as a determinant of the interest or repayment date. Risk securities are issued by a special purpose vehicle.

We hope the you have a better understanding of the meaning of Risk Securitization.

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