Chapter 15: Asset-Backed Securities (ABS) Essentials

In this section

• ABS Structures: Auto Loans, Credit Cards
  Explore the core features, structures, and risk factors of auto loan and credit card ABS, including revolving periods, early amortization triggers, and tranching.
• Securitization Process and Key Parties
  Explore the securitization lifecycle, roles of key participants, legal considerations, and exam-focused insights on ABS structuring.
• Credit Enhancement: Internal vs. External
  Explore how structured finance transactions use both internal and external credit enhancement to lower risk in Asset-Backed Securities, with detailed coverage of subordination, overcollateralization, reserve accounts, letters of credit, and more.
• Item Set: ABS Credit Analysis in a Vignette
  Master effective ABS credit analysis through a realistic item-set vignette. Learn how to evaluate collateral quality, assess coverage ratios, interpret triggers, and apply real-world insights to make well-informed judgments on ABS risk and sustainable cash flows.