1, the two definitions are different, ABS is an asset-backed bond and REITs is a real estate trust and investment fund.

2. ABS means that you own real estate, and then use it as collateral to issue bonds. Real estate investment trusts invest in real estate after raising funds through public offering.

Extended data:

I. Types and Scope of Asset Securitization

1. Classified according to the underlying assets.

According to the different basic assets of securitization, asset securitization can be divided into real estate securitization, accounts receivable securitization, credit asset securitization, future income securitization (such as highway toll collection), bond portfolio securitization and so on.

According to the geographical classification of asset securitization.

Asset securitization can be divided into domestic asset securitization and offshore asset securitization according to the different regions where sponsors, issuers and investors belong.

3. Classification according to the attributes of securitization products.

According to the different financial attributes of securitization products, it can be divided into equity securitization, bond securitization and mixed securitization.

Second,? REITs classification method

1. According to the organizational form, REITs can be divided into company type and contract type.

Corporate REITs are based on the company law, and the funds raised by issuing REITs are used to invest in real estate assets. REITs have independent legal personality, operate funds independently, raise fund shares for unspecified investors, and the holders of REITs share eventually become shareholders of the company.

The contractual real estate investment trust, based on the establishment of trust deed, raises funds by issuing beneficiary certificates and invests in real estate assets. Contractual REITs are not independent legal persons, but assets, which are initiated by fund management companies, among which the fund managers are entrusted to invest in real estate as trustees.

The main difference between them lies in the different legal basis and operation mode, so contractual REITs are more flexible than corporate REITs. Corporate REITs are dominant in the United States, while contractual REITs are more common in Britain, Japan and Singapore.

2. According to the different forms of investment, REITs can usually be divided into three categories: equity type, mortgage type and mixed type.

Equity REITs invest in real estate and have ownership. More and more equity REITs begin to engage in real estate business activities, such as leasing and customer service. However, the main difference between REITs and traditional real estate companies is that the main purpose of REITs is to operate real estate as part of the portfolio, not to resell it after development.

Mortgage REITs invest in real estate mortgage loans or real estate mortgage-backed securities, and their main source of income is real estate loan interest.

Hybrid REITs, as the name implies, are between equity REITs and mortgage REITs. They own some property rights and also engage in mortgage services. Most of the REITs circulating in the market are equity, and the other two types of REITs account for less than 10%. Equity REITs can provide better long-term investment returns and greater liquidity, and the market price is more stable.

3. According to the different operation modes, real estate investment trust funds are divided into closed and open types.

The circulation of closed REITs is restricted at the initial stage of issuance, and no additional issuance is allowed at will; And open REITs can issue new shares at any time in order to increase capital investment in new real estate. Investors can also buy it at any time and redeem it at any time when they don't want to hold it. Closed REITs are generally listed and circulated in stock exchanges, and investors can transfer and sell them in the secondary market when they don't want to hold them.

4. According to the different ways of raising funds, REITs are divided into public offering and private offering.

Private equity REITs raise funds from specific investors in a private way, with specific targets, which are not allowed to be made public and generally not traded on the market.

Public offering of REITs to raise trust funds from public investors in the form of public offering requires strict examination and approval by the regulatory authorities and can be widely publicized.

References:

Baidu encyclopedia-asset securitization

Baidu Encyclopedia-Real Estate Trust and Investment Fund