Asset-Backed Security - ABS

Asset-Backed Security - ABS

A financial security backed by a loan, lease or receivables against assets other than real estate and mortgage backed securities. As an investor, asset-backed securities are an alternative to investing in corporate debt.

Notes:

ABSs are essentially the same thing as a mortgage-backed security except that the security is backs assets such as loans, leases, credit card debt, a company's receivables, royalties, etc and not mortgage based securities.

See also: Assets, Corporate Bond, Mortgage-Backed Securities, Royalty, Security