Definition for : Asset backed securities
Asset backed securities are securities issues by a vehicle created on purpose to buy Assets from a bank, a company, a state, like Trade receivables or Inventories, and to provide the seller with cash and the buyer with a financial product caracterised by a certain Risk profile and a Rate of return.
(See Chapter 22 Shares of the Vernimmen)
To know more about it, look at what we have already written on this subject