Examples of ABS in a sentence
ABS are securitized debts where the underlying assets are receivables arising from various loans including automobile loans, personal loans, loans against consumer durables, etc.
MBS are formed by pooling various types of mortgages while ABS are formed by pooling assets such as auto loans, credit card receivables or student loans.
ABS are backed by other assets such as credit card, automobile or consumer loan receivables, retail installment loans or participations in pools of leases.
Besides principal payments or defaults, with this type of an ABS structure the pool may also be exposed to changes due to transactions undertaken by the entity or entities managing the pool.
They are termed as Asset Backed Securities (ABS) or Mortgage Backed Securities (MBS).