Financial Markets

Asset-Backed Securities

Course Overview:
Finance has changed its focus over the years from relationships to commodities. Agreements that used to hold two people together are transformed into merchandise to be acquired and terminated at will. For example, an agreement to arrange a loan to a customer creates a relationship between the lender and borrower. However, that direct relationship is changed when the loan is converted into a bond or debenture. It becomes a commodity that can be traded among any number of bond buyers, who assume the role of lenders. By packaging and selling the bond into the market, the original lender’s claim to receive principal and interest is transferred to anonymous others.

Asset-backed securities (ABS) offer an excellent example of this trend. Using securitization, companies put their claims over assets on the market. When they convert their rights to various goods into securities and sell them, their balance sheet is wiped clean of these assets.

Although they still have the assets in their possession, they have sold their responsibility or liability - along with the rights. With unique benefits to issuers and investors, asset-backed securities are a concept that has steadily gained popularity.

Learning Objectives:

After completing this course, participants should be able to:
  • Identify the various types of asset-backed securities
  • Identify the steps involved in the securitization process
  • Determine the process of using tranches in investing
  • Identify the regulatory agency responsible for protecting the interests of the public and investors
  • Recognize the process of using a barbell investment strategy
  • Determine the advantages of exchange-traded funds

Prerequisites/Advanced Preparation:

Basic knowledge of finance principles and practices.

Speaker / Author:

Rich White is a financial writer and editor with over 25 years of experience in the financial services industry. Mr. White graduated from Vanderbilt University in 1972 with a B.A. degree, major in English, and has held Series 7 and 63 licenses.

His areas of special interest include financial planning and retirement plans, annuities, equities, fixed income securities, mutual funds, insurance products, seminar selling, retirement analysis and illustrations, prospecting skills and tax-efficient investing. He writes a regular column and weekly blog for the advisor Website BenefitsPro.

Among the clients Mr. White has served are: American Express Financial Advisors, AXA Financial, the Bond Marketing Association, Chase Manhattan Bank, Citibank, the Closed-End Bond Fund Association, Conseco, Coregis, Dime Savings Bank, Evergreen Funds, First Union National Bank, Fleet Boston Financial Corp., Frank Russell Company, GE Capital, Guardian, Invesco, J. & W. Seligman, MacKenzie Financial Services, MetLife, Orbitex Capital, Prudential Financial, Nathan & Lewis Securities, National Life of Vermont, SEI Investments, Sentinel Funds, TIAA-CREF, William Blair Funds, and Van Eck Funds.

Mr. White is the author of two books written for financial advisors: 12 Steps to Your Personal Success in 401(k)s and Small Business Retirement Plans and How to Find and Keep High Net Worth Clients. Both books were published in 2001.

Mr. White has written the training courses used by the Canadian Association of Independent Financial Advisors (CAIFA) on financial planning, mutual funds and investment markets. He also has worked as editor of professional newsletters published by the former Investors Press: 401(k) ALERT and Variable Products ALERT.

From 1977 to 1981, Mr. White worked as the first full-time Editor-in-Chief of Financial Planning magazine, the monthly trade journal then owned by the International Association of Financial Planning (IAFP).


Price (USD)

Standard: $49.90


Course Code : 99FINCA02

Release Date : 04/27/2015
Expire Date : 03/31/2023
Credits :
CPE 2.00
QAS 2.00

Course Level : Basic
Course Type : New Standards
Length : 1hr 40min
Passing Grade : 70%
Field Of Study : Finance
Theme : Financial Markets

Format Type : eLearning
Mobile Compatible

Included In

Returning Subscribers

- OR -