Asset-Backed Securities (ABS)

Tradeable securities whose cash flows are backed by a pool of financial assets. A specific, publicly traded or 144A subset of ABF — all ABS falls under ABF, but ABF includes non-securitised structures.

Asset-Based Lending (ABL)

A revolving credit facility secured by a borrowing base of current assets (accounts receivable, inventory) with advances capped by eligible collateral value. Typically bilateral, funded by one or few lenders; collateral pool is corporate rather than consumer/financial.

Securitisation

The process of pooling financial assets (loans, leases, receivables) into a special purpose vehicle, which issues tranched securities backed by the cash flows from those assets. EU definition (SR 2017/2402 Article 2): a transaction where the credit risk associated with an exposure is tranched.

Warehouse Facility

A revolving credit facility that funds asset origination before the assets are securitised or sold; the warehouse lender holds a first-priority lien on the asset pool. A temporary funding mechanism — not a permanent funding structure.