Three reasons why to invest in ABS

Enhance risk/return profile

Adding European ABS as a replacement for part of the credit portfolio often enhances the risk/return profile of an investment portfolio.

Protection against rising interest rates

ABS bonds have a floating rate coupon, offering protection against rising interest rates, thereby providing a positive total return in a rising rate environment.

Consumer exposure

As the typical fixed income portfolio is built on government bonds and corporate bonds, European ABS add consumer exposure to the investment portfolio.

Whitepaper

ABS under the microscope

Asset-Backed Securities (ABS) offer an opportunity for investors to enhance the return and diversify the risk of their portfolio. This white paper provides insights into this asset class. What are ABS, how are ABS structured and what are the characteristics of the European ABS market in particular? This analysis can help investors to better understand the asset class, including its opportunities and risks.

Floating rates and ABS

The safety of floating rates

Since the start of the financial crisis, central banks across the world, amongst them the ECB, have introduced extraordinary measures to support the global economy and financial markets. They have been increasing their balance sheet by buying government and corporate debt, covered bonds and ABS. In addition, key central bank rates have been cut to historically low levels. Withdrawal of this very accommodative policy will have important consequences for financial markets in general and fixed income markets in particular.

Facts & Figures*

Why invest in European asset backed securities?

€15billion

managed globally in ABS

Of which approximately 5.1 billion euro is invested in Europe

18professionals

ABS dedicated worldwide

The seven-strong European team is one of the largest on the continent, with members having an average of nine years' experience in the industry.

More

about our ABS fund

ABS fund information

A solid return

Asset-backed securities: better than their reputation

Why are asset-backed securities (ABS) so unloved even though they offer a higher yield than corporate credits and are secured by collateral? For many investors the term ABS brings back memories of the subprime crisis in the United States and the global financial and economic crisis that followed. We believe that the bad reputation of ABS is not justified.

Our ABS Team

Meet the Team

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.

More information about ABS?

Contact Us

To find out more about our ABS capabilities in your region, please contact us directly.

* Data as at September 2018