asset-backed security

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Asset-backed security

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.
References in periodicals archive ?
Global Banking News-June 2, 2015--Barclays analyst says ECB's influence in Asset-Backed Securities Market limited
Investors were eager to subscribe on the day of offering, and the asset-backed securities have been nearly twice over-subscribed on average.
The high-quality rating threshold the bank formerly used to determine the elegibility of certain asset-backed securities, such as bonds backed by auto loans, industrial leases, credit card receipts and mortgages, was lowered in the action.
TALF -- the Term Asset-Backed Securities Loan Facility -- was set up by the U.
com)-- FG Solutions International's new asset-backed securities trading desk will be utilizing proprietary electronic trading platform for real-time online price allocation to its North American clients as an additional trading service to its existing brokerage trading services.
Borg-Brenner started her career at Credit Suisse in fixed income and asset-backed securities research.
This proposal codifies existing practice and informal guidance for shelf registration of asset-backed securities.
Prime Minister Ryutaro Hashimoto on Thursday accepted a proposal by the ruling Liberal Democratic Party (LDP) for lifting a ban on the use of postal savings and insurance funds to buy asset-backed securities, LDP officials said.
CDB is expected to issue the asset-backed securities (ABS) in the interbank market around November 20, and the bond-like securities are to mature in June 2017.
Summary: In a surprise turn of events, loan requests from the Federal ReserveEoe1/4aos Term Asset-Backed Securities Loan Facility (TALF) program dropped by 64%, the Federal.