what is the difference between mbs and abs 
an asset based security abs is similar to a mortgage backed security mbs both are securities that like bonds pay a fixed rate of interest derived from an underlying pool of income generating assets usually debts or loans the main difference is that an mbs as its name implies consists of a package of mortgages real estate loans in contrast an abs is usually backed by other sorts of financing student loans auto loans or credit card debt 2some financial sources use abs as a generic term encompassing any sort of securitized investment based on underlying asset pools in which case an mbs is a kind of abs others consider abss and mbss to be separate investment vehicles 