Asset-Backed Security - ABS
A financial security backed by a loan, lease or receivables against assets other than real estate and mortgage backed securities. As an investor, asset-backed securities are an alternative to investing in corporate debt.
Investopedia Commentary
ABSs are essentially the same thing as a mortgage-backed security except that the security is backs assets such as loans, leases, credit card debt, a company's receivables, royalties, etc and not mortgage based securities.
Related Links
Bond Basics Tutorial
Asset Allocation within Fixed Income
See also: Assets, Corporate Bond, Mortgage-Backed Securities, Royalty, Security
asset-backed security