What Is An Asset Backed Security (ABS)?

Patrick Curtis

Reviewed by

Patrick Curtis WSO Editorial Board

Expertise: Investment Banking | Private Equity

An asset backed security (ABS) 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 ABS's are mortgage-backed securities.

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Patrick Curtis

Patrick Curtis is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.