What is abs wealth management product?

ABS financial products refer to securitized assets, and ABS is asset securitization.

Asset securitization refers to a financing method that guarantees the expected income that the project assets can bring and then sells it to the capital market for financing. Asset securitization can improve the financing efficiency in the economy, but if it is not regulated and allowed to expand, it will bring great risks.

Extended data:

ABS financing mode is a securitization financing mode supported by project assets, that is, based on the assets owned by the project and guaranteed by the expected income of the project assets, financing is carried out by issuing bonds in the capital market.

ABS is the abbreviation of "asset securitization".

ABS asset securitization is a popular project financing method in the international capital market, which has been adopted by large-scale projects in many countries.

1998 April 13, China's first ABS securitization financing scheme for the purpose of obtaining international financing was first implemented in Chongqing. This is the first city-based ABS securitization financing scheme in China.

Compared with other securities products, asset-backed securities have the following advantages:

1, the income is attractive. Among AAA rated assets, the yield of asset-backed securities is higher than that of US Treasury bonds with the same maturity, and its yield is roughly equivalent to that of corporate bonds or mortgage-backed bonds with the same maturity and credit rating.

2. High credit rating. From the perspective of credit, asset-backed securities are one of the safest investment tools. Similar to other debt instruments, they are also evaluated and rated according to their ability to repay principal and interest on time. However, unlike most corporate bonds, asset-backed securities are protected by collateral, and their internal structural characteristics are enhanced by external protection measures, thus further ensuring the realization of debt liability. Most asset-backed securities have obtained the highest credit rating-triple A from major credit rating agencies.

3. Diversification and diversification of investment. Asset-backed securities market is a highly diversified market in structure, income, term and guarantee mode.

Assets used to support securities cover different business areas, from credit card receivables to loans for cars, boats and leisure facilities, from equipment leasing to real estate and bank loans.

In addition, asset-backed securities provide investors with the conditions to diversify the fixed-income securities that are traditionally concentrated in government bonds, money market bonds or corporate bonds.