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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Asset Backed

Definition:

This term is used to describe a type of security that's got an asset backing it up.

It's usually a specific physical security like a wad of cash backing a company that's issuing bonds. In theory, this type of security should be safer—if things go belly up, the company can sell the asset to have the money to pay its shareholders.