asset-backed security

(redirected from Asset Backed Bonds)
Also found in: Wikipedia.

Asset-backed security

Asset-Backed Security

A debt security collateralized by some receivables on some credit sale. Common examples of this collateral include receivables on credit cards, automotive loans, and similar assets. Returns on these securities come from customers' payments on their credit cards and other loans that may be backing the securities. Banks and companies package and sell their receivables to investors in order to reduce the risk of loan defaults. See also: Mortgage-backed security.

asset-backed security

A debt security collateralized by specific assets. Although the term applies to any debt backed by identified assets, it generally refers to securities backed by short-term collateral such as credit-card receivables, car loans, and home-equity loans. Because even the most financially strapped companies can hold valuable assets, it is possible for the credit quality of asset-backed securities to be substantially better than the general credit of the company issuing the securities.
References in periodicals archive ?
The case is an important one for investors because it provides a road map for prosecuting fraud claims involving other asset backed bonds on a class-wide basis, according to Plaintiff's attorney Joel Laitman, of Cohen Milstein Sellers & Toll PLLC of New York City.
17, 2003--Standard & Poor's Ratings Services today affirmed its ratings on 18 classes of collateralized asset backed bonds from nine series of Impac CMB Trust (see list).
The asset backed bonds issued by Residential are generally rated by one or more nationally recognized credit rating agencies such as Standard & Poor's or Moody's.
The Company intends to transfer one hundred percent of its holdings of mortgage backed and asset backed bonds as well as additional capital into Fog Cutter Capital Markets Inc.
EETCs function as hybrid corporate / asset backed bonds, with ratings tied to the unsecured corporate rating of the underlying airline.
agencies, asset backed bonds, residential and commercial mortgage-backed bonds, and AAA-rated corporates.
This fourth quarter of fiscal 1997 included two additional milestones: the first securitization issuance by the Company of $47 million of Asset Backed Bonds collateralized by $48 million of Fannie Mae Mortgage-Backed Securities; and the first bulk acquisition by the Company of $16 million of FHA Title I loans.
has completed its first securitization through a $47 million private placement of its Asset Backed Bonds, Series 1997-1.
In this inaugural securitization, the Company has formed HOME Securities One LLC, a Delaware limited liability company, and HOME Securitization Trust I, a Delaware business trust, which issued a single class of Asset Backed Bonds.
25, 1997--HomeCapital Investment Corporation (Nasdaq SmallCap:HCAP) and its affiliates have completed their first securitization, a $47 million private placement of Asset Backed Bonds, Series 1997-1.