Asset backed securities are a type of bond that is based on pools of assets. Assets are pooled to make otherwise minor and uneconomical investments worthwhile, while also reducing risk by diversifying the underlying assets. The securitization makes these assets available for investment to a broader set of investors. Typically, the securitised assets might be highly illiquid and private in nature. Wikipedia does not have an article with this exact name. ... Asset-backed securities are bonds backed by a pool of financial assets that cannot easily be traded in their existing form. ... Dutch East India Company bond, issued in 1623. ... It has been suggested that Definiton of asset be merged into this article or section. ... Securitization is a financial technique that pools assets together and, in effect, turns them into a tradeable security. ...
The financial assets in the pool backing the asset backed securities range from mortgages and credit card debt to accounts receivables. Often the term asset backed security is used in a narrower sense. As the mortgage backed security market is so large, it is often seen as separate. In this case, asset backed security means bonds backed by a pool of financial assets, but not mortgages. A mortgage (literal translation: death pledge) is a device developed in the common law world, whereby the ownership of property is passed from one person -- the mortgagor -- to another -- the mortgagee in return for the loan of money. ... Credit cards A credit card system is a type of retail transaction settlement and credit system, named after the small plastic card issued to users of the system. ... Accounts receivable is one of a series of accounting transactions dealing with the billing of customers which owe money to a person, company or organization for goods and services that have been provided to the customer. ... A mortgage-backed security (MBS) is a bond whose cash flows are backed by homeowners mortgage payements. ...
A significant advantage of asset backed securities is that they bring together a pool of financial assets that otherwise could not easily be traded in their existing form. By pooling together a large portfolio of these illiquid assets they can be converted into instruments that may be offered and sold freely in the capital markets.
Asset-backed securities are a type of bond that is based on pools of assets.
Assets are pooled to make otherwise minor and uneconomical investments worthwhile, while also reducing risk by diversifying the underlying assets.
A significant advantage of asset-backed securities is that they bring together a pool of financial assets that otherwise could not easily be traded in their existing form.
Feeds |
Contact