Glossary
- Asset-Backed Commercial Paper (ABCP)
Commercial paper collateralized by loans, lease, receivables or asset-backed securities
- Asset-Backed Security (ABS)
A type of bond or note that is based on pools of assets, or collateralized by the cashflows from a specified pool of underlying assets. Assets are pooled to make otherwise minor and uneconomical investments worthwhile, while also reducing risk by diversifying the underlying assets. Securitization makes these assets available for investment to a broader set of investors. These asset pools can be made of any type of receivable, from the common, like credit card payments, car loans, and mortgages, to esoteric cashflows such as aircraft leases, royalty payments and movie revenues. Typically, ...
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