asset-backed security
- 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
- Investors often purchase asset-backed securities to mitigate risk and get a return on their money.
- To manage the portfolio, financial firms use asset-backed securities to bundle various loans into one tradable asset.
- The company decided to issue asset-backed securities providing a way for it to generate cash quickly.
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