What is difference between MBS and ABS securities , What is paydown and their types, what is bond ,equity or derivatives?

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MBS and ABS securities are types of asset-backed securities, paydown is the reduction of a loan's principal balance, bonds represent debt, equity represents ownership, and derivatives are financial instruments derived from an underlying asset.

MBS (Mortgage-Backed Securities) are backed by a pool of mortgages, while ABS (Asset-Backed Securities) are backed by a pool of various assets such as auto loans, credit card debt, or student loans.
Paydown is the reduction of the principal balance of a loan, typically through scheduled payments or prepayments.
Types of paydown include scheduled paydown, prepayments, and voluntary paydown.
Bonds are debt securities issued by governments or corporations to raise capital, with the promise of periodic interest payments and repayment of the principal at maturity.
Equity represents ownership in a company, giving shareholders a claim on the company's assets and earnings.
Derivatives are financial instruments whose value is derived from an underlying asset, such as options, futures, and swaps.

What is difference between MBS and ABS securities , What is paydown and their types, what is bond ,equity or derivatives?

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