Other Asset-Backed Securities
The securitization of other illiquid assets quickly followed. Auto loan–backed securities debuted in 1986. The first credit card–backed securities were also issued in this time frame. Soon the market for securitization had expanded to home equity loans, student loans, equipment leases, and future entertainment royalties.
Asset-backed securities (ABSs) are securities created by pooling financial assets other than first-lien mortgages. They operate on the same general principle as mortgage-backed securities: that large numbers of loans in a pool will reduce credit risk through divers
