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an asset-backed security is a type of bond or note that is based on a pool of assets or collateralized by the cash flows from a specified
for holders of cards the interest is paid monthly and the principal is not amortized the principal payments made by credit
the issuers of albs are the financial subsidiaries of automobile manufacturers commercial banks and other independent finance companies
types of asset-backed securities1 auto loan-backed securities albs2 credit
the issuers right to call back the issue before the maturity date is referred to as a call provision in case of asset-backed securities
in a pass-through structure each certificate holder will be allotted a proportion of the cash flow from the underlying pool of loans or
it is in the form of third-party guarantees which protect against losses up to a particular fixed level this is available in
credit enhancement of an asset-backed security implies the existence of support for one or more of the bondholders in the structure
there are fixed as well as floating rate asset-backed securities a floating rate asset-backed security is one whose underlying pool
the asset that acts as a collateral for an asset-backed security can either be an amortizing or a non-amortizing asset in an
introductionwhen financial assets or bonds are pooled together and offered to the investors for receiving the inflow of funds
a mortgage may be defined as a pledge of property to secure payment of a debt depending upon the terms of mortgage agreed upon between
mbs are the most complicated securities that are sensitive to interest rates the factors that affect the price of mbs are
international mortgage-backed securities are the mortgage-backed securities that are issued in a country by a non-domestic entity with
these securities are backed by income-producing real estate usually in the form of warehouses shopping centers apartments office
the mortgage-backed securities dealt with till now are agency mortgage backed securities there are other mbs which can be for any
these securities aid in unpacking the cash flows from a pass-through the most uncomplicated stripped mortgage-backed securities are the
collateralized mortgage obligations cmoscmos retain many of the yield and credit quality advantages of pass-throughs while
unlike the mortgage pass-through securities the mortgage-backed bonds are debt obligations of the mortgage originator every issue of such
the cash flows from a portfolio of us standard mortgages have the characteristic of being uncertain the cash flows from the mortgage
a mortgage is sold to the spv at the discretion of the bank to securitize it into a mortgage backed security that is the
the main aim of securitization that was initiated in the late sixties was to resolve problems of mismatch and protect the us mortgage
the basic form of a mortgage backed security is that of a mortgage pass-through security among the mortgage-related securities the
a mortgage-backed security is a debt and a kind of security that is backed by a pool of mortgages or a credit support from another
there are some misconceptions about securitizationpoor quality originators end up in securitizing their assetsa banks best