Commoning and Pooling

• (p.pr.&vb.n.) of Pool.
• (n.) The act of uniting or an agreement to unite, an aggregation of properties belonging to different persons, with a view to common liabilities or profits.

Pooling is the combining of different loans into standardized or predefined units for trading purposes. This activity increases the homogenization of the underlying collateral. A key benefit of pooling is a diverse, generic security.