ABX, or Asset-Backed Securities, are financial instruments created by pooling various types of assets, such as loans or mortgages, and then selling shares of this pool to investors. These securities are backed by the cash flows generated from the underlying assets, providing a way for investors to earn returns based on the performance of those assets. The process of creating ABX involves several steps, including the securitization of assets and the issuance of bonds. Investors in ABX can benefit from diversification and potentially higher yields, but they also face risks related to the performance of the underlying assets, such as mortgages or auto loans.