asset-backed security

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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 ?
6 million Bear Stearns Asset Backed Securities (BSABS) Trust 2006-SD1, asset-backed certificates, series 2006-SD1 as follows:
The portfolio supporting the CDO comprises approximately 46% residential mortgage-backed securities (RMBS), 30% commercial mortgage-backed securities (CMBS), 19% commercial asset backed securities (CABS), 1% consumer asset backed securities, 2% CDOs, and 2% corporate securities.
NEW YORK -- Fitch has affirmed the following classes from eight Asset Backed Securities Corporation (ABSC) mortgage pass-through certificates:
Alex Cigolle, Managing Director, is responsible for the Asset Backed Securities business.
E[acute accent]Alex Cigolle, Managing Director, is responsible for the Asset Backed Securities business.
Four of the above MASTR Asset Backed Securities Trust (MABS) transactions are failing their delinquency triggers (2002-NC1, 2002-OPT1, 2003-NC1, and 2003-OPT1) and Fitch believes they will continue to fail for life.
3 million class M floating-rate asset backed securities to 'AA+' from 'AA';
Other areas covered include, among others, the European Commission's Green Paper on Financial Services, EU tax harmonisation of direct taxes, the implementation of the Prospectus Directive, "liquid" shares, asset backed securities, and the impact of the Capital Requirements Directive.
Some of the credit spreads were the lowest on record for any new fixed rate issue offered in the asset backed securities market.
NEW YORK -- Bear Stearns Asset Backed Securities Trust, Series 2005-3, asset-backed certificates are rated by Fitch Ratings as follows:
NEW YORK -- Bear Stearns Asset Backed Securities (BSABS) Trust 2005-SD3, asset-backed certificates, series 2005-SD3 are rated by Fitch Ratings as follows:
TMM's focus is the management of credit related mortgage backed securities and asset backed securities in structured vehicles such as CDO's.