Business, Legal & Accounting Glossary
An Asset-Backed Security (ASB) is a bond or note whose collateral is the cash flows from a pool of financial obligations such as mortgages, car loans, or credit-card receivables.
An asset–backed security (ABS) is a security whose income payments and hence value are derived from and collateralised (or “backed“) by a specified pool of underlying assets. The pool of assets is typically a group of small and illiquid assets which are unable to be sold individually.
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This glossary post was last updated: 15th January, 2020