Securitization is a financial process in which assets or revenue streams are transformed into financial instruments, such as bonds, notes, or other securities that can be traded on the open market. This process involves pooling various assets together and creating a security that represents an interest in those assets. The issuer of the security then uses the cash flow generated by the underlying assets to make payments on the debt issued. Securitization is often used as a way for financial institutions to reduce their risk exposure, by transferring the risks associated with certain assets or loans onto investors in the securities. This can help to free up capital and increase liquidity within the financial system.