Asset-Backed Securities
/ˈæsɛt bækt səˈkjʊərɪtiz/
Definitions
- (n.) Securities representing interests in pools of financial assets, such as loans or receivables, that generate cash flows used to pay investors.
The investor purchased asset-backed securities to gain exposure to a diversified pool of consumer loans.
Forms
- asset-backed securities
- asset-backed security
Related terms
See also
Commentary
Term commonly arises in structured finance; clarity needed on underlying assets and cash flow rights when drafting agreements involving asset-backed securities.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.