PT - JOURNAL ARTICLE AU - Tom Arnold AU - Bonnie Buchanan TI - Furniture as a Conduit for Credit AID - 10.3905/jsf.2010.16.2.010 DP - 2010 Jul 31 TA - The Journal of Structured Finance PG - 10--17 VI - 16 IP - 2 4099 - https://pm-research.com/content/16/2/10.short 4100 - https://pm-research.com/content/16/2/10.full AB - Securitization has transformed the global financial landscape, and in recent years accounts receivable securitization has become an increasingly popular means to accelerate cash flow. However, this particular style of securitization has encountered problems, which began well before the recent financial crisis. In 2000, Heilig-Meyers became the first company in which the senior notes of asset-backed securities suffered a principal loss. This article discusses the securitization of accounts receivable and its associated risks, using as an example the role of asset-backed securities in the Heilig-Meyers bankruptcy. In the case of Heilig-Meyers, selling furniture became secondary to issuing credit—a problem similar to the one that occurred in the real estate and mortgage markets.TOPICS: Asset-backed securities (ABS), other real assets