**SECURITIES AND EXCHANGE COMMISSION****Washington, D.C.  20549****UNITED STATES****FORM 10-K****[ X ] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934****[    ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**(State or Other Jurisdiction(Telephone number, including area code)**Asset Backed Securities Corporation****Delaware**(I.R.S. Employer Identification No.)**13-3354848**(Commission file number of Issuing Entity) (Address of Principal Executive Offices)**New York, New York****11 Madison Avenue**(Zip Code)**10010****(212) 325-2000**Securities registered pursuant to Section 12(b) of the Act:NoneIndicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.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 12 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. For the fiscal year ended December 31, 2006orFor the transition period from _____________ to _____________(Exact name of Issuing Entity)Securities registered pursuant to Section 12(g) of the Act:NoneIndicate by check mark  if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.Indicate by check mark  if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K ( 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.                      Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).**[  Yes]****on behalf of the Home Equity Mortgage Trust 2006-2**Documents incorporated by reference:**None**State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant's most recently completed second fiscal quarter.**Not Applicable.****[X No]****[  Yes] [X No]****[X Yes] [     N o ]****[X]****[  Yes] [X No]****Large accelerated filer [ ]****Accelerated filer [ ]****Non-accelerated filer [X]**(Exact Name of Registrant as Specified in its Charter)(Exact Name of Sponsor as Specified in its Charter)**Asset Backed Securities Corporation****DLJ MORTGAGE CAPITAL, INC.****333-131465-03****PART I****Item 1. Business.****Item 1A. Risk Factors.****Item 1B. Unresolved Staff Comments.****Item 2. Properties.****Item 3. Legal Proceedings.****Item 4. Submission of Matters to a Vote of Security Holders.**Omitted.Omitted.Omitted.Omitted.Omitted.None.**Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.****Item 6. Selected Financial Data.****Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation.****Item 7A. Quantitative and Qualitative Disclosures About Market  Risk.****Item 8. Financial Statements and Supplementary Data.****Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.****Item 9A. Controls and Procedures.****Item 9B. Other Information.****PART II**None.Omitted.Omitted.Omitted.Omitted.Omitted.Omitted.Omitted.**Item 10. Directors and Executive Officers of the Registrant.****Item 11. Executive Compensation.****Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.****Item 13. Certain Relationships and Related Transactions.****Item 14. Principal Accounting Fees and Services.****PART III**Omitted.Omitted.Omitted.Omitted.Omitted.**SUBSTITUTE INFORMATION PROVIDED IN ACCORDANCE WITH GENERAL INSTRUCTION J(2) TO FORM 10-K.****Item 1112(b) of Regulation AB.**None.**Item 1114(b)(2) of Regulation AB.**None.**Item 1117 of Regulation AB.****Item 1119 of Regulation AB.**None.**Item 1122 of Regulation AB.****Servicer Compliance Statement.****Significant Obligors of Pool Assets (Financial Information).****Item 1115(b) of Regulation AB.****Credit Enhancement and Other Support, Except for Certain Derivatives Instruments (Information Regarding Significant Enhancement Providers Financial Information).****Certain Derivatives Instruments (Financial Information).****Legal Proceedings.****Affiliations and Certain Relationships and Related Transactions.****Compliance with Applicable Servicing Criteria****Item 1123 of Regulation AB.**The registrant knows of no material pending legal proceedings involving the entities contemplated by Item 1117 of Regulation AB, other than routine litigation incidental to the duties of those respective parties.Financials for FGIC for Fiscal Year ended December 31, 2006, filed as Exhibit 99.1 hereto.a) J.P. Morgan Trust Company, N.A, as Custodianb) LaSalle Bank National Association, as Custodianc) Ocwen Loan Servicing, LLC, as Servicerd) PNC Bank, N.A., as Servicere) Select Portfolio Servicing, Inc., as Special Servicerf) The Bank of New York and The Bank of New York Trust Company, as Successor in interest to J.P. Morgan Trust Company, as Custodiang) U.S. Bank National Association, as Trusteeh) Wilshire Credit Corporation, as Servicera) Ocwen Loan Servicing, LLC, as Servicerb) PNC Bank, N.A., as Servicerc) Select Portfolio Servicing, Inc., as Special Servicerd) Wilshire Credit Corporation, as ServicerPNC Bank, N.A. (the "Asserting Party") has assessed its compliance with the Applicable Servicing Criteria for the Reporting Period and has concluded that the Asserting Party has complied, in all material respects, with the Applicable Servicing Criteria with respect to the HEMT 2006-2, except for criteria set forth in Sections 229.1122(d)(4)(iv) and 229.1122(d)(4)(ix), respectively, of the CFR, where the Asserting Party has identified instances of material noncompliance. These instances of material noncompliance were a result of a loan boarding process which relied on information provided electronically to the Asserting Party from the applicable counterparty, in accordance with the Asserting Party's agreement with the Seller. As a result, payments on pool assets were not being applied in accordance with the related pool asset documents as well as adjustments to interest rates with variable rates not being computed or applied based on the related pool asset documents. Specifically, numerous instances were identified where late charges, various fees (return item fees, stop payment fees, pre-payment penalty fees, over-limit fees, wire transfer fees, annual fee), and payment posting priority were not being applied in accordance with the related pool asset documents. In addition, numerous instances were identified where interest rate indices, interest rate margins, and the timing of interest rate index changes were not being computed or applied in accordance with the related pool asset documents.The 1122 statements for Wilshire Credit Corporation have disclosed the following instances of material noncompliance:  for one of the forty-five loan payoffs selected for testing, Wilshire calculated the prepayment charge in accordance with the related mortgage note, but transposed the numbers when entering the charge into Wilshire's system, resulting in an overcharge to the borrower. The error has been corrected and the overcharge has been  refunded to the borrower.a)    Exhibits**Item 15. Exhibits, Financial Statement Schedules.**b)    Not applicable.c)    Omitted.**PART IV**4)  10) Incorporated by reference as Exhibit (4).31) Rule 13a-14(d)/15d-14(d) Certifications.33) Reports on assessment of compliance with servicing criteria for asset-backed securities.34) Attestation reports on assessment of compliance with servicing criteria for asset-backed securities.35) Servicer compliance statement.The Indenture, dated as of April 28, 2006 by and among Home Equity Mortgage Trust 2006-2, as Issuer and U.S. Bank National Association, as Indenture Trustee (incorporated herein by reference from Exhibit 4.3 of the Current Report on Form 8-K of the issuing entity, as filed with the Commission on May 16, 2006).a) J.P. Morgan Trust Company, N.A, as Custodianb) LaSalle Bank National Association, as Custodianc) Ocwen Loan Servicing, LLC, as Servicerd) PNC Bank, N.A., as Servicere) Select Portfolio Servicing, Inc., as Special Servicerf) The Bank of New York and The Bank of New York Trust Company, as Successor in interest to J.P. Morgan Trust Company, as Custodiang) U.S. Bank National Association, as Trusteeh) Wilshire Credit Corporation, as Servicera) J.P. Morgan Trust Company, N.A, as Custodianb) LaSalle Bank National Association, as Custodianc) Ocwen Loan Servicing, LLC, as Servicerd) PNC Bank, N.A., as Servicere) Select Portfolio Servicing, Inc., as Special Servicerf) The Bank of New York and The Bank of New York Trust Company, as Successor in interest to J.P. Morgan Trust Company, as Custodiang) U.S. Bank National Association, as Trusteeh) Wilshire Credit Corporation, as Servicera) Ocwen Loan Servicing, LLC, as Servicerb) PNC Bank, N.A., as Servicerc) Select Portfolio Servicing, Inc., as Special Servicerd) Wilshire Credit Corporation, as Servicer**SIGNATURES**By (Signature and Title):Date**3/30/2007****/s/ Bruce Kaiserman****Bruce KaisermanVice President**Pursuant to the requirements of Section 13 or 15(d) 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.(Registrant) :**Asset Backed Securities Corporation****EXHIBIT INDEX**EXHIBIT DESCRIPTION       Exhibit 31       Rule 13a-14(d)/15d-14(d) Certifications.       Exhibit 33       Reports on assessment of compliance with servicing criteria for asset-backed securities.       Exhibit 34       Attestation reports on assessment of compliance with servicing criteria for asset-backed securities.       Exhibit 35       Servicer compliance statement.        Exhibit 99.1     Financials for FGIC for Fiscal Year ended December 31, 2006a) J.P. Morgan Trust Company, N.A, as Custodianb) LaSalle Bank National Association, as Custodianc) Ocwen Loan Servicing, LLC, as Servicerd) PNC Bank, N.A., as Servicere) Select Portfolio Servicing, Inc., as Special Servicerf) The Bank of New York and The Bank of New York Trust Company, as Successor in interest to J.P. Morgan Trust Company, as Custodiang) U.S. Bank National Association, as Trusteeh) Wilshire Credit Corporation, as Servicera) J.P. Morgan Trust Company, N.A, as Custodianb) LaSalle Bank National Association, as Custodianc) Ocwen Loan Servicing, LLC, as Servicerd) PNC Bank, N.A., as Servicere) Select Portfolio Servicing, Inc., as Special Servicerf) The Bank of New York and The Bank of New York Trust Company, as Successor in interest to J.P. Morgan Trust Company, as Custodiang) U.S. Bank National Association, as Trusteeh) Wilshire Credit Corporation, as Servicera) Ocwen Loan Servicing, LLC, as Servicerb) PNC Bank, N.A., as Servicerc) Select Portfolio Servicing, Inc., as Special Servicerd) Wilshire Credit Corporation, as Servicer