Define: Asset-Backed Security

UK Accounting Glossary

Definition: Asset-Backed Security


Quick Summary of Asset-Backed Security


An asset-backed security (ABS) is a financial security collateralised by a pool of assets such as loans, leases, credit card debt, royalties or receivables.



What is the dictionary definition of Asset-Backed Security?

Dictionary Definition


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.


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Full Definition of Asset-Backed Security


An assetbacked 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.

For investors, assetbacked securities are an alternative to investing in corporate debt.

Asset-backed securities (ABS) alongside mortgage-backed securities (MBS) are two of the most important types of asset classes within the fixed-income sector.


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Synonyms For Asset-Backed Security


asset-backed, valuable, important, precious, collateral


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Asset-Backed Security. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. January 21, 2020 https://payrollheaven.com/define/asset-backed-security/.
Chicago Manual of Style (CMS):
Asset-Backed Security. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/asset-backed-security/ (accessed: January 21, 2020).
American Psychological Association (APA):
Asset-Backed Security. PayrollHeaven.com. Retrieved January 21, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/asset-backed-security/

Definition Sources


Definitions for Asset-Backed Security are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 7th May 2019.