Business and Personal Finance Dictionary

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• ASSET-BACKED BOND
  
  These bonds, also known as asset-backed securities, are backed by loans or by money owed to a company for merchandise or services purchased on credit. For example, an asset-backed bond is created when a securities firm bundles some type of debt, such as mortgages or car loans, and sells investors the right to receive the payments that consumers make on those loans.
  
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