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ABS

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ABS

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 SecuritiesMBS
Securitization



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