asset-backed security

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Asset-backed security

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The European Commission (EC) has said that it has cleared an extension of the UK asset backed securities guarantee scheme, which was introduced as part of the efforts to support the banking industry during the current crisis.
China Zhenshang Bank has announced that it is planning to issue asset backed securities.
According to an analyst with Barclays Plc (LSE: BARC), the ECB has only limited influence in the Asset Backed Securities market, reports Bloomberg.
New York, NY, February 26, 2015 --( The Knowledge Group/The Knowledge Congress Live Webcast Series, the leading producer of regulatory focused webcasts, announced today that it has scheduled a live webcast entitled: Asset Backed Securities Reform Rules: Adoption & Implementation in 2015 Live Webcast.
Many market participants were hoping for fullblown quantitative easing rather than an expansion of the Asset Backed Securities program.
In a snap poll conducted on August 27-28, economists placed a 75 per cent chance the ECB would buy asset backed securities through a quantitative easing (QE) programme.
24 November 2011 - British investor Insetco (LON:INC), focused on the life insurance settlement sector, said on Thursday it was negotiating an extensionA of the deadline to meet conditions on its proposed acquisition of Luxembourg-based special purpose vehicles ARM Asset Backed Securities SA and Catalyst Investment Group Limited (CIGL).
In this role, Agarwal was responsible for developing and implementing the investment strategy for Agency and non-Agency mortgages, asset backed securities and commercial mortgage backed securities.
The Technical Committee of the International Organization of Securities Commission (IOSCO) has published a consultation report - Principles for Ongoing Disclosure for Asset Backed Securities (ABS Ongoing Disclosure Principles) - containing principles designed to provide guidance to securities regulators who are developing or reviewing their regulatory regimes for ongoing disclosure for asset-backed securities (ABS).
Treasury during the global financial crisis in 2008 to jumpstart the frozen Asset Backed Securities (ABS) market.
Treasury Department unveiled a plan last week to create an up to $200 billion credit facility that would bring liquidity to the market for asset backed securities tied to small business loans and consumer debt such as credit card, auto and student loans.