Role of asset-backed securities in financing aviation industry by region 2020
ABS is a type of capital market security collateralized by assets, like auto or home loans, credit card receivables or royalties. The utilization of ABS helps the issuer of a loan to reduce its exposure to default risks and augment business activities further. Although ABS play a crucial role in the financial markets, its excessive issuance was one of the major contributors to the 2008 financial crisis.