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 ?
Asset-Backed Commercial Paper, Series 1997-1 at R-1 (high) (sf)
This additional agreement is for the initial tranche of asset-backed financing and comes as a result of NTS finalizing a deal with the city of Tianjin, China's fourth-largest city, to re-finance existing asset-backed financing for electric bus conversion, valued at over 57B RMB, approximately $8.25B.
These are as follows:--$253,610,000 class A asset-backed notes 'AAAsf'; Outlook Stable; --$14,430,000 class B asset-backed notes 'AAsf'; Outlook Stable; --$15,570,000 class C asset-backed notes 'Asf'; Outlook Stable; and --$16,390,000 class D asset-backed notes 'BBBsf'; Outlook Stable.
Global Banking News-September 20, 2018-CAI International closes offering of USD343.5m of asset-backed notes
M2 EQUITYBITES-September 20, 2018-CAI International closes offering of USD343.5m of asset-backed notes
Established structured finance (SF) markets are likely to be more supportive of the development of asset-backed Sukuk than the largest Islamic finance markets, according to Fitch Ratings.
American Mortgage Consultants has introduced DynAMC Solutions ("DynAMC"), offering services for non-mortgage asset-backed loans and securities including marketplace, auto and personal loans, the firm said.
As this could potentially be the country's first private sector-led issuance of asset-backed securities, 8990 Holdings had been advised to work on an initial P3 billion to test the waters.
Asset-backed securities issuance totaled $37.8 billion in the first quarter, an increase of 13.9% quarter over quarter but a decline of 36.4% year-over-year.
Attorneys Arnholz, Auerbach, and Gainor aim to help banks, investors, issuers, and accountants understand the regulatory process for offerings of asset-backed securities.
Summary: Moody's also expects the asset-backed securities (ABS) market to continue