Asset-Backed Security financial definition of Asset-Backed Security. Asset-Backed Security finance term by the Free Online Dictionary.

Asset-backed security

A security that is collateralized by loans, leases, receivables, or installment contracts on personal property, not real estate.

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.

Asset-Backed Security (ABS)

What Does Asset-Backed Security (ABS) Mean?

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

Investopedia explains Asset-Backed Security (ABS)

An ABS is essentially the same thing as a mortgage-backed security except that the securities backing it are assets such as loans, leases, credit card debt, a company's receivables, or royalties but not mortgage-based securities.

Related Terms:
• Asset
• Corporate Bond
• Derivative
• Mortgage-Backed Securities—MBS
• Securitization

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ABS AMBAC Financial Group, Inc. American Municipal Bond Assurance Corporation Asset Backed Asset-Backed Alert Asset-Backed Bond Bear Stearns CBO CDO CLO CMO collateral Collateralized Bond Obligation Collateralized Debt Obligation Collateralized Loan Obligation collateralized mortgage obligation Early Amortization Investment Vehicle Lehman Brothers Aggregate Bond Index	For more information about Fitch's comprehensive subscription service, FitchResearch, which includes all presale reports, surveillance, and credit reports on more than twenty asset-backed security (ABS) asset classes including collateralized debt obligations (CDOs), contact product sales at 212/908-0800 or at 'webmaster@fitchratings. Fitch Issues Presale Report on Race Point II CLO, Limited by Business Wire	asset management Asset Management Account Asset Motive Asset Play Asset Price Asset Pricing Model Asset Quality asset redeployment Asset Retirement Obligation Asset Sale Asset Share Value Asset Stripper Asset Stripping Asset Substitution Asset Substitution Problem Asset Sufficiency or Insufficiency Asset Swap Asset Turnover Asset Valuation Asset Valuation Reserve Asset Value Asset-Backed Alert Asset-Backed Bond Asset-Backed Commercial Paper Asset-Backed Fund Asset-Backed Security Asset-Based Finance Asset-Based Financing Asset-Conversion Loan Asset-Coverage Test Asset-Liability Committee Asset-Liability Gap Asset/Equity Ratio Asset/Liability Committee Asset/Liability Management Assets Assets and Valuation Assets Requirement Assets requirements Assets Under Management Assets-in-Place Assicurata aggiunta Assicurato Assicurazione Assicurazione contro sinistri Assicurazione generale Assicurazione sul carico Assicurazioni patrimoniali assign Assignable Contract Assigned Dealer	Asset value Asset value Asset Value per Share Asset Value per Share Asset Value per Share Asset Values Asset Values Asset Values Asset Values per Share Asset Values per Share Asset Values per Share Asset Visibility Asset Visibility Computer Based Training Asset Visibility Report Asset, Liability, Owner's Equity, Revenue, Expense Asset, Service and Demand Management Asset, Wasting Asset, Wasting Asset-backed Asset-Backed Alert Asset-backed bond Asset-Backed Bonds Asset-Backed Commercial Paper Asset-Backed Commercial Paper asset-backed fund asset-backed fund Asset-Backed Funds Asset-Backed Funds Asset-Backed Insurance Lending Asset-backed securities Asset-Backed Security Asset-Based Community Development Institute Asset-based economy Asset-based economy Asset-based economy Asset-Based Finance Asset-based financing Asset-based financing Asset-based lending Asset-Conversion Loan Asset-Conversion Loans Asset-coverage test Asset-Equity Ratio Asset-for-Asset Swap Asset-for-Asset Swaps Asset-Liability Committee Asset-Liability Committee Asset-Liability Gap Asset-Liability Gaps Asset-liability management Asset-Sensitive asset-stripper asset-stripper asset-strippers asset-strippers Asset-stripping Asset-stripping Asset-stripping Asset-stripping Asset/equity ratio Asset/Liability Committee

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ABS
AMBAC Financial Group, Inc.
American Municipal Bond Assurance Corporation
Asset Backed
Asset-Backed Alert
Asset-Backed Bond
Bear Stearns
CBO
CDO
CLO
CMO
collateral
Collateralized Bond Obligation
Collateralized Debt Obligation
Collateralized Loan Obligation
collateralized mortgage obligation
Early Amortization
Investment Vehicle
Lehman Brothers Aggregate Bond Index

For more information about Fitch's comprehensive subscription service, FitchResearch, which includes all presale reports, surveillance, and credit reports on more than twenty asset-backed security (ABS) asset classes including collateralized debt obligations (CDOs), contact product sales at 212/908-0800 or at 'webmaster@fitchratings.

Fitch Issues Presale Report on Race Point II CLO, Limited by Business Wire

asset management

Asset Management Account

Asset Retirement Obligation

Asset Sale

Asset Share Value