Index

This Issue in United States

Asset Backed Index (abx)

Concept of Asset Backed Index (abx) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A credit derivative (i.e. an instrument that transfers risk from one party to the other) index based on 20 underlying ABS bonds that are backed by subprime mortgages. There are five separate tradable tranches in each series and a new series is issued approximately every six months, market conditions permitting.

Resources

See Also

• Derivatives Contract

Index in relation to Home Equity Lines of Credit

In this context, a definition of Index is provided: The economic indicator used to calculate interest-rate adjustments for adjustable-rate mortgages or other adjustable-rate loans. The index rate can increase or decrease at any time. See also Selected Index Rates for ARMs over an 11-year Period (www.federalreserve.gov/pubs/arms/arms_english.htm) for examples of common indexes that have changed in the past.