FOLIO Ontology

Asset-Backed Securities

IRI:
https://folio.openlegalstandard.org/RBGd796pNg5ltGWhkyk2ifm
Preferred Label Collateralized Securities
Alternative Labels
ABS Asset-Backed Bonds Securitized Assets

Definition

Asset-Backed Securities (ABS) are financial instruments backed by a pool of assets, typically loans or receivables, that generate cash flows to pay interest and principal to investors. ABS allow lenders to transfer the risk of the underlying assets to investors and are commonly used to improve liquidity and raise capital.

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Additional Information

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