What Is An Asset Backed Security (ABS)?
An asset backed security () is a security which uses an asset as the form of backing (i.e. collateral). The asset is usually something that provides consistent payments that line up with the interest payments from the security. The most well known form of ’s are mortgage-backed securities.
- Basis Point (BPS)
- Collateralized Debt Obligation (CDO)
- Fixed Income (FI)
- Mortgage Backed Security (