Hi, I have a question regarding the constrution of ABS. Basically, ABS is created to separate certain asset from the main business ( by setting a subsidiary,etc) to get less expensive financing. This will appear in the off-the-balance section of a financial statement. It is claimed that this method can be used as a way to cover up the debt. ( eg. the Enron case) How could this happen? is it because the loan borrowed using the ABS will only appear in the subsidiary balance sheet ( not the parent company)? However, parent company has to release all the financial information ( including its subsidiaries if the subsidiary is under supervision)[Am I right?]. Can somebody shed light on this? getting very confused… thanks a lot! Less than three weeks to go…