Term:
Asset-backed security
Definition:
A security collateralized by loans, leases, unsecured receivables, or instalment contracts on personal property, automobiles, or credit cards. The cash flows generated by the underlying obligations are used to pay principal and interest to the asset-backed security holders.
Domain:
Finance
Source:
Coordinated Portfolio Investment Survey Guide, Second Edition, International Monetary Fund, 2002, Washington DC. Appendix VI: Definition and Description of Instruments