Ever wondered? Below is a sample of UST Libraries resources you can use to answer this question.
asset-backed. Generic term for securities or financing methods where the underlying obligation and the source of interest and principal repayment is the cash flow from a particular financial asset or a portfolio (pool) of financial assets. Examples of asset-backed securities include receivables from commercial loans, credit cards, auto loans, real estate, inventory financing, and other securities (cf. mortgage-backed). The key factor in putting together such securities is the ability to differentiate or pool specific income producing assets so as to establish a legitimate legal claim or lien thereon.
How did I get here? Follow these steps.
- Reference resources search for “finance” (without quotes) in All of St Thomas/electronic only
- Scroll through results to Oxford Handbook of International Financial Terms
- Search for “asset-backed” (without quotes)
- Scroll through results, which include asset-backed, asset-backed security, asset-backed finance, asset-backed commercial paper, mortgage-backed, and other related terms.
What if these definitions aren’t enough?
- Chapters of The Handbook of Fixed Income Securities are available in the reference section of the Keffer Library, offer some great explanation and insight.
- Can’t get to the Keffer Library? Try this e-book, The Handbook of Financial Instruments. Chapters 14 to 20 explain simple, direct language about collateralized debt obligations, agency and non-agency mortgage-backed securities, and more in clear and understandable terms.
Well, what’s happening with asset-backed finance in the world right now?
- Good question! Here’s a great Financial Times article from April 21 about how investors are re-evaluating the US mortgage market.
- Want some more articles like this? Go to Factiva and follow these steps:
- In the Free Text box, type “asset-backed” (without quotes)
- In the Subject section below the Free Text box, click on “subject”
- Click the + beside Corporate/Industrial News
- Scroll to Funding/Capital and click the word so that it shows up in pink above the selection field
- Click the Run Search button
- You’ll get a lot of results. Look for articles with titles like “Why REITs Could Lead Mortgage-Backed Comeback” or “ECB Moves to Restore Confidence in Securitisation” to get a good overview of what investment banks, investors, and even regulatory agencies are doing in asset-backed financing.