Asset backed securities

Glossary

Banking

Asset backed securities

ABS are collateralised securities issued via bankruptcy-remote Special Purpose Vehicles (SPVs) set up by the originator of the underlying receivables. ABS are issued in tranches that represent a risk position in the pool of underlying assets. Underlying assets are predominantly residential mortgages but include everything from commercial mortgages, student debt, credit card debt, auto loans, SME loans, aircraft leases, royalties, trade finance, non-performing loans and more.

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