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Related to Asset-Backed Fund: Asset Backed Commercial Paper
A mutual fund that invests in real estate, equipment, stocks and other tangible assets. The advantage to an asset-backed fund is the fact that the assets behind it have liquidation value (that is, if a company fails, one can sell the company's equipment or real estate to cover a portion of the investment). Funds that invest in bonds and other debt securities do not necessarily have this advantage.
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