🔵 WHAT IS AN ASSET-BACKED SECURITY (ABS)❓
🔵 An asset-backed security (ABS) is a type of financial investment that is collateralized by an underlying pool of assets—usually ones that generate a cash flow from debt, such as loans, leases, credit card balances, or receivables. It takes the form of a bond or note, paying income at a fixed rate for a set amount of time, until maturity.
🔵 For income-oriented investors, ABSs can be an alternative to other debt instruments, like corporate bonds or bond funds. For issuers, ABSs allow them to raise cash which can be used for lending or other investment purposes.
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💰 @Exchange 🪙
🔵 An asset-backed security (ABS) is a type of financial investment that is collateralized by an underlying pool of assets—usually ones that generate a cash flow from debt, such as loans, leases, credit card balances, or receivables. It takes the form of a bond or note, paying income at a fixed rate for a set amount of time, until maturity.
🔵 For income-oriented investors, ABSs can be an alternative to other debt instruments, like corporate bonds or bond funds. For issuers, ABSs allow them to raise cash which can be used for lending or other investment purposes.
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💰 @Exchange 🪙