AssetBacked Securities

1
Asset-Backed Securities

• ABS derive their cash flows from a pool of
  underlying assets
  
• MBS mortgage backed securities
• CARS certificates for automobile receivables
• CARDS certificates for amortizing revolving
  debts
  
• HELS home equity loan securities

2
Asset-Backed Securities

• The underlying assets generate cash flows of
  principal and interest which can be repackaged
  and sold to investors.