what is the difference between an mbs and an abs 
mortgage backed securities are bonds backed by home loans issued to consumers asset backed securities are bonds backed by auto loans mobile home loans credit card loans and student loans the bottom linesecuritization pools or groups debt into investable portfolios to make marketable financial instruments investors can profit from the interest and principal paid on the underlying assets both mortgage backed securities and asset backed securities are created through securitization and include mortgages consumer and commercial debt 