SECURITIES AND EXCHANGE COMMISSION
                                              Washington, D.C. 20549

                                                     Form 10-Q


         [ X ]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                                    SECURITIES EXCHANGE ACT OF 1934
                           For the quarterly period ended December 31, 1998

                                                        OR

         [ f  ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                                    SECURITIES EXCHANGE ACT OF 1934
                                    For the transition period from          to


                                          Commission File Number 33-93574


                              Bear Stearns Asset Backed Securities, Inc.
                         (Exact name of registrant as specified in its charter)


            Delaware                                 13-3836437
  (State or other jurisdiction of          (I.R.S. Employer Identification No.)
  incorporation or organization)


  245 Park Avenue, New York, New York                  10167
  (Address of principal executive offices)          (Zip Code)


                               (212) 272-2000
                    (Registrant's number, including area code)

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934 during the  preceding  twelve  months (or for such shorter  period that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

                         Yes   X                                         No


     THE REGISTRANT  MEETS THE CONDITIONS SET FORTH IN GENERAL  INSTRUCTION H(1)
(a) AND (b) OF FORM 10-Q AND IS  THEREFORE  FILING  THIS  FORM WITH THE  REDUCED
DISCLOSURE FORMAT CONTEMPLATED THEREBY.
<PAGE>

                                    BEAR STEARNS ASSET BACKED SECURITIES, INC.


                                                       INDEX





                               Part I. FINANCIAL INFORMATION

Item 1.      Financial Statement
                Statement of Financial Condition at December 31, 1998
                    (Unaudited) and June 30, 1998
                Statement of Operations (Unaudited) for the three months
                    ended December 31, 1998 and for the six months ended
                    December 31, 1998
                Statement of Cash Flows (Unaudited) for the six months ended
                    December 31, 1998
                Notes to Financial Statements (Unaudited)

Item 2.      Management's  Discussion  and Analysis of Financial  Condition and
             Results of Operations 


                               Part II. OTHER INFORMATION

Item 1.      Legal Proceedings

Item 6.      Exhibits and Reports on Form 8-K

                  Signature



<PAGE>

<TABLE>
                                    BEAR STEARNS ASSET BACKED SECURITIES, INC.
                                         STATEMENT OF FINANCIAL CONDITION


<CAPTION>
                                         December 31,               June 30,
                                             1998                     1998
                                         (Unaudited)

<S>                                    <C>                      <C>
Assets
  Receivable from Bear Stearns 
         Securities Corp.              $     31,679           $      31,697
  Deferred costs                            798,777                 771,784
                                       --------------          --------------
     Total Assets                      $    830,456           $     803,481
                                           ========                ========

Liabilities and Stockholders Equity

  Payable to Parent                    $    794,673           $     765,156
                                       --------------           -------------
     Total Liabilities                      794,673                 765,156
                                       --------------           -------------


Stockholders Equity

Common Stock, $1.00 par value;
  1,000 shares authorized:
  1,000 shares outstanding                    1,000                   1,000
Retained earnings                            34,783                  37,324                 
                                       --------------          -------------
     Total Stockholders Equity               35,783                  38,324
                                       --------------          -------------
     Total Liabilities and 
          Stockholders Equity         $     830,456           $     803,481
                                            ========               ========




See accompanying notes to financial statements.



</TABLE>

<PAGE>

<TABLE>
                                        BEAR STEARNS ASSET BACKED SECURITIES, INC.
                                                  STATEMENT OF OPERATIONS
                                                        (Unaudited)

<CAPTION>




                                                           Three Months Ended               Six Months Ended
                                                               December 31,                  December 31,
                                                                   1998                          1998
 
<S>                                                                <C>                           <C>
Expenses
   Other expenses                                                $   2,093                      $   4,502
                                                                ----------                   ------------
   Total expenses                                                    2,093                          4,502
                                                                 ---------                   ------------


Loss before benefit from income taxes                               (2,093)                        (4,502)

Benefit from income taxes                                              912                          1,960
                                                                 ----------                    -----------


Net loss                                                         $  (1,181)                     $  (2,542)
                                                                    =======                        =======





See accompanying notes to financial statements.





</TABLE>

<PAGE>

<TABLE>
                                        BEAR STEARNS ASSET BACKED SECURITIES, INC.
                                                  STATEMENT OF CASH FLOWS
                                                        (Unaudited)

<CAPTION>



                                                                  Six Months Ended        Six Months Ended
                                                                       December 31,            December 31,
                                                                           1998                    1997

<S>                                                               <C>                          <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss                                                          $     (2,542)                $    (2,536)

Increase in:
     Receivable from affiliates                                              18                       ---
      Deferred Costs                                                    (26,993)                      ---
      Other Liabilities                                                      ---                    287,740
                                                                ---------------              ---------------
      Cash (Used in) provided by operating activities                   (29,517)                    285,204
                                                                ---------------              ---------------


CASH FLOWS FROM FINANCING ACTIVITIES
     Increase (decrease) in payable to Parent                            29,517                    (285,204)
                                                                ---------------              ---------------
      Cash provided by (used in) financing activities                    29,517                    (285,204)
                                                                ---------------              ---------------


Cash and cash equivalents, beginning of period                            0                         0
                                                                ---------------              ---------------

Cash and cash equivalents, end of period                          $       0                   $     0
                                                                      =========                  =========





See accompanying notes to financial statements.




</TABLE>


<PAGE>

                                    BEAR STEARNS ASSET BACKED SECURITIES, INC.
                                           NOTES TO FINANCIAL STATEMENTS
                                                    (UNAUDITED)





Note 1.           Organization

     Bear Stearns  Asset  Backed  Securities,  Inc.  (the  "Company"),  a direct
wholly-owned  limited  purpose  subsidiary  of The Bear Stearns  Companies  Inc.
("Bear Stearns"), was organized on June 2, 1995.
                  
     The  Company  was formed  solely for the  purpose  of issuing  directly  or
through trusts established by it, in series, debt securities that are secured or
collateralized  by one or more pools of Compound  Interest  Securities,  Planned
Amortization  Class  Securities,   Variable  Interest  Securities,  Zero  Coupon
Securities,  Principal Only Securities,  Interest Only Securities,  Participants
Securities, Senior Securities or Subordinate Securities.
                  
     The financial statements are prepared in conformity with generally accepted
accounting principles which require management to make estimates and assumptions
that affect the amounts in the  financial  statements  and  accompanying  notes.
Actual results could differ from those estimates.

Item 2.  Management's  Discussion  and Analysis of Financial  Condition and
         Results of Operations

     The  Companys  principal  business  activity is the  issuing,  directly or
through trusts established by it, in series, debt securities that are secured or
collateralized  by one or more pools of Compound  Interest  Securities,  Planned
Amortization  Class  Securities,  Variable Interest  Securities,  Principal Only
Securities, Interest Only Securities, Participants Securities, Senior Securities
or Subordinate Securities.
                  
The Companys net loss for the three months ended December 31, 1998 was $1,181.
The Companys net loss for the six months ended December 31, 1998 was $2,542.

 
     Year 2000 Issue
 
     The Year 2000 issue is the result of legacy computer programs being written
using two  digits  rather  than four  digits to define the  applicable  year and
therefore,  without  consideration  of the impact of the upcoming  change in the
century. Such programs may not be able to accurately process dates ending in the
year 2000 and  thereafter.  All  hardware  and  software  used by the Company is
through The Bear Stearns Companies,  Inc. and affiliates (BSC)and therefore this
discussion  represents  the year 2000  issue  for BSC taken as a whole.  BSC has
determined  that they need to modify or replace  portions of their  software and
hardware so that its computer system will properly utilize dates beyond December
31, 1999.

     Over three years ago, BSC established a task force to review and develop an
action plan to address the Year 2000 issue.  BSCs  action plan  addresses  both
information technology and non-information  technology system compliance issues.
Since then,  the ongoing  assessment  and  monitoring  phase has  continued  and
includes  assessment  of the degree of compliance  of its  significant  vendors,
facility operators, custodial banks and fiduciary agents to determine the extent
to which BSC is vulnerable to those third  parties  failure to remediate  their
own year 2000 issues.  BSC has contacted all significant  external vendors in an
effort  to  confirm  their  readiness  for  the  Year  2000  and  plans  to test
compatibility   with  such  converted   systems.   BSC1  also   participates  in
industry-wide tests.
                  
     BSC has and will continue to utilize both  internal and external  resources
to  reprogram,  or replace,  and test the  software  and  hardware for Year 2000
modifications.  To date,  the  amounts  incurred  and  expensed  related  to the
assessment of, and efforts in connection with, the Year 2000 and the development
of a remediation plan have approximated $31.3 million. BSCs total projected Year
2000 project cost,  including the estimated  costs and time  associated with the
impact  of third  party  Year 2000  issues,  are  based on  currently  available
information.  BSCs  total  remaining  Year 2000  project  cost is  estimated  at
approximately  $28.7 million which will be funded  through  operating cash flows
and expensed as incurred.
                  
     BSC presently  believes that the  activities  that it is undertaking in the
Year 2000 project should  satisfactorily  resolve Year 2000 compliance exposures
within  its  own  systems  worldwide.   BSC  has  substantially   completed  the
reprogramming  and replacement  phase of the project.  Testing has commenced and
will  proceed  through  calendar  1999.   However,  if  such  modifications  and
conversions  are not  operationally  effective on a timely basis,  the Year 2000
issue could have a material impact on the operations of the BSC.
                 
     Additionally, there can be no assurance that the systems of other companies
on which  BSCs  systems  rely will be  timely  converted,  or that a failure  to
convert by another  company,  or a  conversion  that is  incompatible  with BSCs
systems,  would not have a material  adverse  effect on BSC.  While BSC does not
have a specific,  formal  contingency  plan, the BSCs action plan is designed to
safeguard  the  interests of the BSC and its  customers.  BSC believes that this
action plan  significantly  reduces the risk of a Year 2000 issue serious enough
to cause a business  disruption.  With regard to Year 2000  compliance  of other
external entities, BSC is monitoring developments closely. Should it appear that
a major utility,  such as a stock  exchange,  would not be ready,  BSC will work
with other firms in the industry to plan an appropriate course of action.
<PAGE>


                  Part II.    OTHER INFORMATION


Item 1.           Legal Proceedings

                  No legal proceedings are pending.


Item 6.           Exhibits and Reports on Form 8-K

                  (a)      Exhibits

                             None

                  (b)      Reports on Form 8-K:

No reports on Form 8-K have been  filed  during the period  covered by this
report.


<PAGE>


                                                     SIGNATURE






     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                                      
                                   Bear Stearns Asset Backed Securities, Inc.
                                                      (Registrant)




Date:    February 12, 1999          By:   /s/ William J. Montgoris
                                          William J. Montgoris
                                          Executive Vice President and Treasurer
                                         (Principal Financial Officer)




<PAGE>