ABS is a form of financing, which issues tradable securities backed by a specific portfolio of assets or a specific cash flow.

REITs directly convert illiquid non-securities real estate investment into securities assets in the capital market.

Second, the expression is different.

Asset backed securities, asset securitization.

Real estate investment trust, real estate trust and investment fund.

Third, the way is different.

The process of issuing asset-backed securities (ABS) carries out credit enhancement on the basis of ABS through structured design.

REITs include two basic forms: real estate project financing securitization and real estate mortgage securitization.

Fourth, the repayment methods are different.

ABS refers to the future cash flow generated by the underlying assets as repayment support.

REITs mortgage-backed securities based on mortgage portfolio-mortgage transfer securities repayment.

Extended data

REITs (Real Estate Investment Trust Fund) is a kind of trust fund, which collects the funds of a specific majority of investors by issuing income certificates, manages real estate investment by specialized investment institutions, and distributes the comprehensive investment income to investors in proportion.

Different from the purely private nature of trust in China, REITs in the international sense are equivalent to funds in nature, with a few private placements, but most of them are public offerings. REITs can operate in a closed mode or be listed and traded, similar to open-end funds and closed-end funds in China.

reference data

Baidu encyclopedia -REITs