what is an asset backed security abs 
an abs is a type of financial investment collateralized by an underlying pool of assets usually ones that generate a cash flow from debt such as loans leases credit card balances or receivables it takes the form of a bond or note paying income at a fixed rate for a set amount of time until maturity 13for income seeking investors abss can be an alternative to other debt instruments like corporate bonds or bond funds abss allow issuers to raise cash that can be used for lending or other investment purposes 