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.
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The amendment to Rule 17g-5(a)(3) adds a new paragraph to the rule to provide that the rule will not apply to an NRSRO when issuing or maintaining a credit rating for a security or money market instrument issued by an asset pool or as part of any asset-backed securities transaction, if:
Credit Card Asset-Backed Securities' methodology (the Methodology).
Securities and Exchange Commission has requested information from Volkswagen regarding potential violations of securities laws in connection with issuances of bonds and asset-backed securities, as a result of nondisclosure of certain Volkswagen diesel vehicles' noncompliance with US emission standards.
Ellington Financial invests in a diverse array of financial assets such as residential and commercial mortgage-backed securities, residential and commercial mortgage loans, consumer loans and asset-backed securities and other strategic investments.
Morgan Lewis partners Reed Auerbach and Charles Sweet have authored the latest edition of Offerings of Asset-Backed Securities, which provides comprehensive navigation through the complex rules and regulations governing asset-backed securities.
Securities and Exchange Commission, learned that Nelnet, Inc., one of the largest student loan servicers providing loan servicing for both federal loan and private loan programs, will take over as subservicer for the Access Group portfolio of private and FFELP student loans asset-backed securities.
Ellington Financial LLC is a specialty finance company that invests in a diverse array of financial assets, including residential and commercial mortgage-backed securities, residential and commercial mortgage loans, consumer loans and asset-backed securities backed by consumer loans, collateralized loan obligations, corporate equity and debt securities (including distressed debt), non-mortgage and mortgage-related derivatives, equity investments in mortgage-related entities, and other strategic investments.
These bonds are asset-backed securities that are secured by a mortgage or collection of mortgages.
Under the proposed securitization deal, 8990 Holdings' subsidiaries will sell contract-to-sell receivables to a special purpose company, which will then issue asset-backed securities to investors.
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.
Summary: Moody's also expects the asset-backed securities (ABS) market to continue
THE European Central Bank yesterday announced programmes for the purchase of euro-denominated asset-backed securities and covered bonds, with temporary derogations allowing for the purchase of some Greek and Cypriot private debt under terms, essentially backstopping private debt across the Eurozone.