Asset-Backed Security - ABS


DEFINITION of 'Asset-Backed Security - ABS'

A financial security backed by a loan, lease or receivables against assets other than real estate and mortgage-backed securities. For investors, asset-backed securities are an alternative to investing in corporate debt.


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BREAKING DOWN 'Asset-Backed Security - ABS'

An ABS is essentially the same thing as a mortgage-backed security, except that the securities backing it are assets such as loans, leases, credit card debt, a company's receivables, royalties and so on, and not mortgage-based securities.

  1. A-Note

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  3. Corporate Bond

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  4. Securitization

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  5. Mortgage-Backed Security (MBS)

    A type of asset-backed security that is secured by a mortgage ...
  6. Interest Only (IO) Strips

    The interest portion of mortgage, Treasury or bond payments, ...
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