An Asset-Backed Medium-Term Note (ABMTN) is a financial instrument combining the attributes of medium-term notes and asset-backed securities, typically used to raise capital through securitization.
Asset-Backed Securities (ABS) are financial instruments backed by loan paper or accounts receivable originated by banks, credit card companies, or other providers of credit, often enhanced by a bank letter of credit or by insurance coverage from a third party.
A Collateralized Debt Obligation (CDO) is a type of structured financial product that pools together cash flow-generating assets and repackages this asset pool into discrete tranches that can be sold to investors.
Credit enhancement involves various techniques to improve the credit rating of asset-backed securities, either through internal measures by the issuer or external methods such as third-party guarantees.
A type of arbitrage fund that finances its operations through the sale of asset-backed commercial paper and medium-term notes, investing primarily in asset-backed securities.
A funding facility under which the Federal Reserve Bank of New York lends up to $200 billion on a non-recourse basis to holders of certain AAA-rated asset-backed securities (ABS), aimed at promoting the flow of credit to businesses and households.
