Glossary
- A-Share
- AAA rating
- abs.
- Accrual bond
- Accumulate
- Acquisition currency
- Actively managed fund
- Ad-hoc disclosure
- Additional margin
- Admission of securities to the Regulated Market
- Admission to the exchange
- Admissions Office
- Advance-decline (AD)
- AIBD return (ISMA return)
- AIBD return (ISMA-return)
- All-time high
- All-time low
- Allocation
- Allotment
- Alpha
- American depositary receipt (ADR)
- American depositary share (ADS)
- American-style option
- Annual General Meeting
- AQR (VWAP) executions
- Arbitrage
- Asian option
- Ask
- Ask price
- Asset class
- Asset-backed security
- Asterisk * (price addendum)
- At the money
- Attentism
- Auction principle
- Automatic exercise (warrants)
Asset-backed security
Tradable bond that is backed by accounts receivable
A company can generate liquid funds by selling a portion of its accounts receivable to a subsidiary, which then finances its own operations through the issue of asset-backed loans. Such subsidiaries are established expressly for the purpose of implementing the asset-backed securities (ABS) funding model. ABS can also be issued on receivables that are paid in installments, e. g. receivables from leasing agreements, long-term car loans, collateralized consumer loans, and similar receivables. ABSs are paid back as soon as the borrowers settle their debts.
Financing with ABSs enables companies to utilize a wider range of accounting procedures, and helps reduce their financing costs.
Our glossary explains important financial terms and should not leave any questions unanswered. However, if you are missing a definition, please write to us at redaktion@deutsche-boerse.com. We will then include the term if possible.
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