ABS 2.

(1) Examples of receivables other than mortgages that are pooled and securitized as asset-backed securities issued to investors on the financial market include commercial loans, credit card receivables, car loans and other forms of instalment loans. Securitized receivables are pooled and sold to the issuer by the originator of the assets. Principal and interest flows from the underlying assets are passed through or paid through to the security holders. (2) The expression asset-backed security (ABS) is sometimes used in a broad sense to designate both mortgage-backed securities and other asset-backed securities. It is sometimes used in a narrower sense to designate securities other than mortgage-backed securities.