Asset-backed securities. ABS are bonds, notes or certificates backed by pools of financial assets, such as auto loans, credit card receivables, student loans, and trade receivables. Depending on the context, the term “ABS” may be used to encompass such securities backed by all types of financial assets, including mortgage loans, or it may be used (particularly in US securitization industry parlance) to refer to such securities backed by financial assets other than first lien residential mortgage loans, commercial mortgage loans, and corporate bonds or loans.

Featured definitions