Transferable security

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A negotiable investment in bearer or registered form and which the holder may freely transfer by delivery:

• Debt: A debt security: A bond, note, MTN, warrant, certificate of deposit — that kind of thing — evidencing indebtedness;
• Equities: An equity security, evidencing an equity interest in an undertaking,

To be contrasted with indebtedness or exposure in the form of, say, a loan or over-the-counter derivative, where the creditor or counterparty cannot easily sell its right to repayment.

Transfer

These days transferable securities are cleared electronically through clearing systems like Euroclear, Clearstream and DTC. The days of security-printed bearer bonds are over.

Also called a physical security (to distinguish it from a synthetic one).

Securitisation

To “securitise” an income stream or asset (or a loan, or OTC derivative) is to convert it into the form of a transferable security so it can be easily transferred in the market.