What is abs?
ABS refers to asset-backed securities, which is a financial instrument with bond nature. It is a securities product supported by asset credit.
In general, the issuance process of asset-backed securities is the issuer of basic assets, namely commercial banks, savings and loan companies, mortgage companies, credit card service providers, consumer finance companies and so on. , the sale of assets such as loans or receivables to third parties for special purposes, in this way, the credit of related assets is isolated from the credit bankruptcy of sponsors. Investors in asset-backed securities are mainly hedge funds, pension funds, money market funds, insurance companies, banks and so on. The duration, repayment structure and credit enhancement means of asset-backed securities are different, which are mainly confirmed by telephone quotation and agreement.
According to the statistics of China Securities Regulatory Commission and Financial Market Association, as of 2008, the balance of asset-backed securities in the United States exceeded 10 trillion US dollars, accounting for more than 30% of the balance of the US bond market, becoming the largest bond type, while the balance of asset-backed securities in Europe was10.2 trillion, mainly concentrated in Britain, Spain, the Netherlands, Italy and other countries. In 2005, China Development Bank successfully issued the first single credit asset-backed securities in the inter-bank bond market.
Up to now, * * * has issued various asset-backed securities, exceeding 50 billion yuan, including basic asset securities, including automobile mortgage, housing mortgage loan, high-quality credit assets and so on. The trading methods of asset-backed securities include selling bonds and pledged repurchase.