• Higher risk-adjusted yield than most other fixed income asset classes
• Risk diversification through exposure to consumer risk
• Transparency allows for effective risk management
Asset Back Securities (ABS) bonds are securities backed by assets and hence secured with specific collateral. Investors can choose what specific collateral to invest in. The largest sectors per underlying asset type are residential mortgages, consumer loans, commercial mortgages and loans to corporations.
We have been investing in European ABS since 2001 and have one of the largest investment teams in Europe. The ABS strategy outperformed the benchmark in each year of the crisis. We analyze all ABS sectors to the last details and actively search for attractive opportunities in a broad range of sectors.