ABS notes are backed by financial assets. In our ABS programs the securitized pools of assets may comprise retail loan, retail lease or dealer floorplan receivables of our Financial Services companies. Investors receive their interest and principal payments out of the cash flows coming from our obligors through the regular amortization of the underlying contracts.
The high quality securitization programs of Mercedes-Benz Group are an important pillar of our global refinancing strategy. To guarantee investors the high quality standards in all our ABS programs, similar measures and controls for the selection and the servicing of the assets are implemented. We have experience in ABS transactions since the late 1990ies. Currently, Mercedes-Benz Group has public securitization programs established in several countries in North America, Europe and Asia. Until today all our ABS programs performed very well.