Where results make sense

About us   |   Why use us?   |   Reviews   |   PR   |   Contact us

Asset-backed security - Wikipedia, the free encyclopedia Asset-backed securities are a type of bond that is based on pools of assets. Assets are pooled to make otherwise minor and uneconomical investments worthwhile, while also reducing risk by diversifying the underlying assets. A significant advantage of asset-backed securities is that they bring together a pool of financial assets that otherwise could not easily be traded in their existing form. en.wikipedia.org /wiki/Asset-backed_security   (383 words)

Conversion Solutions, Inc.   (Site not responding. Last check: 2007-10-08) Asset backed securities are created when receivables and other identifiable cash flows are isolated from an underlying asset and sold to investors. Payment is therefore by reference to an asset not in the pool instead of primarily from the performance of a discrete pool of financial assets that by their terms convert into cash and are transferred to a separate issuing entity. It was comprised of two kinds of securities: a $80,000,000 tranche of notes that offered a higher return in exchange for a lack of any guarantee on the principal and a $20,000,000 tranche of the issue consisting of units that carry a guarantee for 50% of the principal and offer a lower return. www.waatle.com /800617.html   (1328 words)

Final Rule: Asset-Backed Securities; Release No. 33-8518; December 22, 2004 For the general definition of “asset-backed security,” we proposed that the amount of proceeds that may be used for a prefunding period could be up to 50% of offering proceeds and the length of the prefunding account could last up to one year from the date of issuance of the asset-backed securities. For securities backed by receivables or other financial assets that do not arise under revolving accounts, an unlimited revolving period will be permitted for up to three years, so long as the new pool assets that are added are of the same general character as the original pool assets. We are clarifying that the depositor for the asset-backed securities, acting solely in its capacity as depositor to the issuing entity, is the “issuer” for purposes of the asset-backed securities of that issuing entity. www.sec.gov /rules/final/33-8518.htm   (14475 words)

Rule 2a-7 -- Money Market Funds Asset Backed Security means a fixed income security (other than a Government security) issued by a Special Purpose Entity (as defined in this paragraph), substantially all of the assets which consist of Qualifying Assets (as defined in this paragraph). An Asset Backed Security (other than an Asset Backed Security substantially all of whose Qualifying Assets consist of obligations of one or more Municipal Issuers, as that term is defined in paragraph (a)(7) of this section) shall not be an Eligible Security unless it has received a rating from an NRSRO. In the case of a security subject to a Demand Feature or Guarantee from an institution by which the institution guarantees a specified portion of the value of the security, the institution shall be deemed to guarantee the specified portion thereof. www.law.uc.edu /CCL/InvCoRls/rule2a-7.html   (3609 words)

III - Asset-backed Securities The asset-backed securities market has grown as different types of loans are securitized and sold in the investment markets. Asset-backed securities may be insured by bond insurers. Home equity loans accounted for 28.2 percent of asset-backed securities outstanding in 2005, up from 24.8 percent in 2004 and 12.8 percent in 1996. www.iii.org /financial2/securities/assetbacked   (179 words)

Asset-backed Security (ABS) Definition In 10 words or less: A debt security that is backed by an asset, such as receivables. Asset-backed securities are debt securities that are backed by assets other than real estate. However, when evaluating investments, it's important to remember that the bond is only as good as the assets that are underlying it. www.teenanalyst.com /glossary/a/abs.html   (90 words)

Asset-Backed Securities All asset-backed securities are securities which are based on pools of underlying assets. The "pooling" of assets occurs to make the securitization large enough to be economical and to diversify the qualities of the underlying assets. The wonder of securization is that it takes a wide variety of formerly illiquid and directly held assets and makes them available to many investors in the form of asset-backed securities. www.finpipe.com /assback.htm   (812 words)

Proposed Rule: Asset-Backed Securities; Release Nos. 33-8419; 34-49644; File No. S7-21-04 For the general definition of “asset-backed security,” the amount of proceeds that may be used for a prefunding period may be up to 50% of offering proceeds and the length of the prefunding account may last up to one year from the date of issuance of the asset-backed securities. Second, for securities backed by leases other than automobile leases, the portion of the cash flow to repay the securities anticipated to come from the residual value of the physical property underlying the leases may not constitute 20% or more, as measured by dollar volume, of the original asset pool. Underlying securities which at the time of their purchase for the asset pool are part of a subscription or unsold allotment would be considered a distribution of the underlying securities. www.sec.gov /rules/proposed/33-8419.htm   (15551 words)

Asset-backed security (ABSs) A financial security backed by either a loan, lease or receivables against assets other than real estate and mortgage-backed securities. A non-consolidation legal opinion is obtained certifying that assets of the trust or special purpose vehicle cannot be consolidated with the corporation's assets in the event of bankruptcy. Not surprisingly, asset-backed securities evolved out of the MBS market, which developed in the seventies when interest rates surged and thrift institutions found themselves saddled with residential mortgages that were earning less than what they were paying for deposits. www.lonympics.co.uk /new/Asset-backed_security.htm   (1040 words)

Real Corporate Lawyer They are said to be "backed" by assets because the performance of asset-backed securities is dependent upon the performance of the underlying assets. An asset-backed security is said to be "credit enhanced" if there is some feature present in the transaction that makes it more likely that the holder of the asset-backed security will receive the principal or interest owed to her. If the pool of underlying assets backing an ABS is similarly concentrated - but instead there is recourse to property (or a group of cross-collateralized properties) - the financial statements of the property (or the group of cross-collateralized properties) should be included in the prospectus. www.realcorporatelawyer.com /faqs/faqasset.html   (6116 words)

Asset-Backed Security - ABS   (Site not responding. Last check: 2007-10-08) A financial security backed by a loan, lease or receivables against assets other than real estate and mortgage backed securities. As an investor, asset-backed securities are an alternative to investing in corporate debt. ABSs are essentially the same thing as a mortgage-backed security except that the security is backs assets such as loans, leases, credit card debt, a company's receivables, royalties, etc and not mortgage based securities. baystreet.investopedia.com /terms/a/asset-backedsecurity.asp   (106 words)

Mortgage-backed security - Wikipedia, the free encyclopedia A 'mortgage-backed security' (MBS) is an asset-backed security whose cash flows are backed by the principal and interest payments of a set of mortgages. There are many reasons for mortgage originators to finance their activities by issuing mortgage-backed securities. This is due to the fact that when the borrower pays back the mortgage he does so at "par." So if the investor bought a bond at 95 cents on the dollar, as the borrower prepays he gets the full dollar back and his yield increases. en.wikipedia.org /wiki/Mortgage-backed_security   (1794 words)

Giddy/IBBM Asset-Backed Securities Seminar The seminar is of relevance to both potential originators and investors in asset-backed securities: bank officers; investment bankers, securities analysts; investment officers; corporate treasurers and other individuals whose professional future may be enhanced by an understanding of the asset securitization technique. Not only does securitization transform illiquid assets into tradeable securities, but it also manages to transform risk by means of the separation of good financial assets from a company or financial institution with little loss of revenue. The assets, once separated from the originator, are employed as backing for high-quality securities designed to appeal to investors. giddy.org /abs-ibbm2001.htm   (1077 words)

Mortgage Backed Security 101   (Site not responding. Last check: 2007-10-08) An MBS is an asset-backed security where the assets are mortgages. If the MBS was not underwritten by the original real estate and the issuer's guarantee the rating of the bonds would be very much lower, because borrowers with improving credit ratings would opt-out of their mortgage to refinance at a lower credit risk, but those with deteriotating credit ratings never would. The high liquidity of most mortgage-backed securities means that any investor wishing to take a position need not deal with the difficulties of theoretical pricing described above; the price of any bond is essentially quoted at fair value, with a very narrow bid/offer spread. www.juiceenewsdaily.com /1004/news/backed.html   (1100 words)

Creating an asset-backed security Electric Perspectives - Find Articles   (Site not responding. Last check: 2007-10-08) Asset-backed securities (ABS) originated in 1986 with mortgage-backed securities, which were securitized with the cash flow generated from principal and interest payments. And there is the crux: Financial assets, such as credit-card or auto loans, have up-front value, and the predictable cash-flow stream allows these illiquid financial assets to be transformed into a tradable security. When California utilities requested guidance from the Securities and Exchange Commission (SEC) regarding securitization accounting, the commission ruled that the proceeds must be reflected on utilities' balance sheets as either deferred revenue or debt. www.findarticles.com /p/articles/mi_qa3650/is_199801/ai_n8779609   (852 words)

AFGI - Association of Financial Guaranty Insurers - Glossary General Obligation Bond: A bond secured by the full faith and credit of an issuer with taxing power. Pass-Through Securities: Securities in which investors own interests in a pool of financial assets and receive pro rata shares of the cash flows the assets generate. Securitization: Packaging of assets to allow the issuance of securities conveying an ownership interest in the assets and their cash flows. www.afgi.org /facts-gloss.htm   (817 words)

SSRN-Deriving Credit Portfolio Diversification Properties from Large Asset-Backed Security Pools by Joseph Mason, Eric ... The correlations are derived from almost $1 trillion of asset backed security pools originated by more than five hundred issuers between January 2000 and September 2003. Such a broad sample, comprised of several hundred thousand pool-month observations, provides a unique opportunity to infer asset correlation structures of commercial bank assets. Since the types of loans analyzed are rarely traded, Markowitz correlations are estimated from five different loan performance measures. papers.ssrn.com /sol3/papers.cfm?abstract_id=871234   (319 words)

Asset Backed Securitization - Commercial Mortgage Backed Securities - Mortgage Backed Security Asset Backed Securitization - Commercial Mortgage Backed Securities - Mortgage Backed Security See for yourself how Asset-Backed Alert guarantees your edge in the worldwide market for asset-backed securities. There are no strings attached: You won't receive an invoice unless you choose to subscribe. www.abalert.com /Public/NewsLetter/FreeTrial/index.cfm   (90 words)

Asset Backed Securities - Online Training Course This introductory course guides students through the evolution of asset securitization, which results in new products for investors and expanded sources of funding and risk transfer opportunities for issuers. It shows how an asset-backed security is constructed, rated by the credit agencies, traded, and valued. The course also explores the different ABS market segments, from the large, established segments like automobile loans, to emerging and sub-prime market segments. www.nyif.com /courses/fimk_1012.html   (307 words)

Deriving Credit Portfolio Diversification Properties From Large Asset-Backed Security Pools, from Kansas State ... The correlations are derived from almost $1 trillion of asset backed security pools originated by more than five hundred issuers between January and September. The analysis demonstrates that the performance of many different loan credit types is weakly correlated, and is sometimes even negatively correlated. Add an arcade to your game room A collection of MAME cabinets and consoles that any arcade enthusiast could love. industries.bnet.com /whitepaper.aspx?docid=171600   (435 words)

Asset-Backed Securities in Asia: Seminars and Resources   (Site not responding. Last check: 2007-10-08) Seminars and resources on asset-backed securities in Asia Financing with Asset-Backed Securities (Institute of Bankers, Kuala Lumpur) Asset-Backed Securities (Frontiers of Finance Series, New York University) asiansecuritization.com   (353 words)

Try your search on: Qwika (all wikis)

About us   |   Why use us?   |   Reviews   |   Press   |   Contact us   Copyright © 2005-2007 www.factbites.com Usage implies agreement with terms.