Asset-Backed Security (ABS)

An asset-backed security (ABS) is a financial instrument that is secured by a pool of assets. These assets can be anything from mortgages, auto loans, credit card debt, student loans, or other types of debt. ABS are typically issued by banks, financial institutions, or other entities that have a large pool of assets. The assets are used as collateral for the ABS, and the issuer of the ABS is responsible for repaying the investors who purchase the security.

History of Asset-Backed Securities

Asset-backed securities have been around since the early 1980s, when the first mortgage-backed securities were issued. Since then, the market for ABS has grown significantly, with a variety of different types of ABS being issued. ABS are now used to finance a wide range of assets, including auto loans, student loans, and credit card debt. ABS are also used to finance commercial real estate, aircraft, and other types of assets.

Comparison of Asset-Backed Securities

Summary

Asset-backed securities are a type of financial instrument that are secured by a pool of assets. These assets can be anything from mortgages, auto loans, credit card debt, student loans, or other types of debt. ABS are typically issued by banks, financial institutions, or other entities that have a large pool of assets. For more information about asset-backed securities, you can visit the websites of the Securities and Exchange Commission, the Federal Reserve, or other financial institutions.

See Also

• Mortgage-Backed Securities
• Auto Loan-Backed Securities
• Credit Card-Backed Securities
• Commercial Mortgage-Backed Securities
• Collateralized Debt Obligations
• Asset-Backed Commercial Paper
• Real Estate Mortgage Investment Conduits
• Structured Investment Vehicles
• Collateralized Loan Obligations
• Residential Mortgage-Backed Securities

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