Lehman Brothers Asset-Backed Securities Index


DEFINITION of 'Lehman Brothers Asset-Backed Securities Index'

A fixed-income index that focuses on asset-backed securities. The Lehman Brothers Asset-Backed Securities Index serves as the performance benchmark for many ABS funds. The index includes pass-through, controlled-amortization and bullet-structured securities, which have a minimum average life of one year.

BREAKING DOWN 'Lehman Brothers Asset-Backed Securities Index'

The Lehman Brothers ABS Index is a subset of the Lehman Brothers Aggregate Bond Index, a primary benchmark for bond funds. The ABS index focuses on three forms of asset-backed debt: credit cards, auto loans and home equity loans. All securities in this index are from senior classes of an issue, which means no subordinated tranches are included.

  1. Bullet Repayment

    A lump sum payment for the entire loan amount paid at maturity. ...
  2. Index

    A statistical measure of change in an economy or a securities ...
  3. Asset-Backed Security - ABS

    A financial security backed by a loan, lease or receivables against ...
  4. Tranches

    A piece, portion or slice of a deal or structured financing. ...
  5. Pass-Through Security

    A pool of fixed-income securities backed by a package of assets. ...
  6. Insider Trading

    The buying or selling of a security by someone who has access ...
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