Pooling Definition
In finance "pooling" is the process of grouping together loans. Loans and debt with similar characteristics can with success be pooled into a new security.
Pooled investments include, but are not restricted to:
- Asset Backed Securities
- Mortgage Backed Securities
- Residential Mortgage-Backed Securities
- Commercial Mortgage Backed Securities
- Collateralized Bond Obligations
- Collateralized Debt Obligations
- Collateralized Mortgage Obligations