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Asset-backed security  (ABS) - Financial definition

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Translations:      FR  titre adossé à des actifs (n.m.)     ES  valor respaldado por activos (n.m.)     DE  durch Vermögenswerte gesichertes Wertpapier (n.n.) , forderungsbesichertes Wertpapier (n.n.) 

Concise definition of the term asset-backed security

Asset-backed securities are securities that are secured by a pool of assets. The originator, usually a bank or other type of financial institution, sells the assets to a special purpose vehicle (SPV) which in turn issues the asset-backed securities to finance the acquisition.

Comprehensive definition of the term asset-backed security

Investors in asset-backed securities receive interest and redeption of principal on their tranches of the securites which are secured by the interest and principal flows from the asset pool.

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