Seasoned Securities / Seasoned Mortgages:

Truth:

Securities and mortgages that have a good track record of one year or more.  Securities and mortgages with an excellent track record of timely and reliable payment are very desirable investment instruments and can be readily sold in the SECONDARY MARKET.

Reference to Seasoned Securities is most often found in HIGH-YIELD INVESTMENT PROGRAM SCAMS.  The swindler tells the potential investor that enormous profits can be made my purchasing blocks of FRESH CUT SECURITIES and selling them the next day as Seasoned Securities in the SECONDARY MARKET.  

The reason they give is that banks and CUTTING HOUSES issue securities in bulk, but that pensions funds, Trusts, insurance funds, brokerage houses, and other secondary market investors cannot purchase securities that have not been seasoned.  They persuade the potential investor that banks need outside buyers to purchase the fresh cut securities to be sold the very next day, or even later the same day, so that the securities can be rated as having been seasoned.

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