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Which of the following is a debt security whose payments originate from other loans, such as credit card debt, auto loans, and home equity loans?
A. asset-backed securities
B. credit quality securities
C. debentures
D. junk bonds
Answer: a

Sagot :

Varshamittal029idn

Asset-backed securities are debt security whose payments originate from other loans, such as credit card debt, auto loans, and home equity loans.

A financial investment known as asset-backed security (ABS) is one that is secured by a pool of underlying assets, typically those that produce a cash flow from debt such as loans, leases, credit card balances, or receivables. It takes the shape of a bond or note and provides income at a fixed rate till maturity over a predetermined period of time. Asset-backed securities can provide an alternative to traditional debt products, such as corporate bonds or bond funds, for income-focused investors.

Asset-backed securities give their issuers the ability to raise money for lending or other types of investments. An ABS's underlying assets are frequently illiquid and cannot be sold separately.

Learn more about securities here: https://brainly.com/question/24093027

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