Asset-backed security

Top Trumps^®Financial Weapons of Mass Destruction^®

ABS

“Tax havens! Derivatives! Bearer paper!”

Docs	Secured MTN. Heavy, but dreary.	7
Amendability	Fat chance. If you don’t like it, ummm — well, what did you buy it for?	0
Collateral	Fully funded, backed with juicy second mortgages on residential homes in suburban Reno? Yum Yum.	7
Transferability	Bearer paper right? Good luck with that. Buy ABS, get stuck with it.	7
Leverage	Usually not, but skip down the tranches and just maybe!	4
Fright-o-meter	Can frighten the bejesus out of those of a nervous disposition. But bark worse than bite.	5

See also

• Covered bond
• Repackaging
• Securitisation
• Espievie