What best describes the term securitization?

The term securitization is best described as the process whereby financial markets convert real estate into a security that can be readily traded by investors. This involves pooling various types of assets, such as mortgages or other real estate-related loans, and then creating securities that represent an interest in these pooled assets. These securities can then be sold to investors, allowing for the transfer of risk and the ability to raise capital in a more efficient manner.

This process is critical in the financial markets as it provides liquidity and makes it easier for investors to gain exposure to certain asset classes without having to directly buy and manage physical properties. By converting tangible assets into marketable securities, it opens up real estate investments to a broader range of investors, thereby increasing market participation and potentially stabilizing or enhancing asset values.

The other options describe various concepts that may relate to asset management or investment strategies but do not accurately capture the specific mechanics and goal of securitization.