Asset Backed Credit Default Swap - ABCDS

Two companies owe money. Their debt is insured by somebody else, such that, if they default and can't pay, then the insurer of their debt is on the hook. This practice is common in home mortgage packages traded among institutional bond investors. Shouting out that these are asset backed as opposed to handshake backed (debentures) simply implies that there is a single identifiable asset that serves as collateral backing the credit and/or trust of either side involved in the swap.