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Asset-Backed Securities Index

An Asset-Backed Securities Index is a benchmark that tracks the performance of a portfolio of asset-backed securities (ABS). These indexes are used by investors to gauge the overall health and performance of the ABS market, which includes securities backed by pools of assets such as mortgages, auto loans, credit card debt, and other receivables. The index reflects the aggregated performance of the underlying securities, offering insight into trends and risks within the ABS market.

Example

An investor might use an Asset-Backed Securities Index to monitor the performance of their investments in mortgage-backed securities relative to the broader market.

Key points

• A benchmark that tracks the performance of a portfolio of asset-backed securities.

• Provides insight into trends and risks in the ABS market.

• Used by investors to compare performance or construct investment products.

Quick Answers to Curious Questions

They provide a benchmark to gauge the performance of ABS markets, helping investors assess trends, risks, and the performance of their own ABS investments.

Investors use ABS indexes to compare the performance of their portfolios, monitor market trends, and create investment products that mirror the index’s returns.

An ABS index typically includes securities backed by assets such as mortgages, auto loans, credit card debt, and other receivables.