asset-backed security

Definition of "asset-backed security"
  1. A type of security, such as a bond, which is backed up by collateral, such as loans or receivables, and symbolizes ownership in the asset pool that has been securitized
How to use "asset-backed security" in a sentence
  1. Investors often purchase asset-backed securities to mitigate risk and get a return on their money.
  2. To manage the portfolio, financial firms use asset-backed securities to bundle various loans into one tradable asset.
  3. The company decided to issue asset-backed securities providing a way for it to generate cash quickly.

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