Lehman Brothers Asset-Backed Securities Index

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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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Index

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

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  3. Pass-Through Rate

    The rate on a securitized asset pool - such as a mortgage-backed ...
  4. Tranches

    A piece, portion or slice of a deal or structured financing. ...
  5. Insider Trading

    The buying or selling of a security by someone who has access ...
  6. Pass-Through Security

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