Asset Backed Credit Default Swap - ABCDS

  

Categories: Bonds, Accounting, Metrics

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.

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Finance: What is a Money Market Fund?80 Views

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finance a la shmoop. what is a money market fund? isn't it a strange concept

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to think about going to a market to buy money? [man walks through grocery store]

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well yeah it's strange but the practice exists and it's a huge multi trillion

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dollar market today. the key word here is money and not investment. why such a big

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diff? well because the notion of investing implies duration. that is when

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you invest in a nice fixer-upper home or a tractor distribution company or shares

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in a fat dividend-paying bank you're investing for presumably a long time [people stand in line]

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like years maybe decades maybe centuries if you can find the right miracle pill.

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but here we're talking about money like the stuff you can buy candy with. so it's

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short term not long and a money market fund basically comprises many series of

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pretty safe bonds that are all coming due in the next 30 to 90 days. sometimes [pie chart]

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longer than that sometimes shorter but generally in the very near future. so why

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would you care about a money market fund? well because it pays you slightly more

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interest on your money than say a bank checking account. and lots of people in

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corporations need cash just sitting around to pay their bills, so there are

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