Floating rate demand driving deals as ABS reopens
Demand for floating rate assets has driven a strong reopening of the European ABS primary market, and is drawing new investors to the asset class, says Kevin Law.
Insights Topic
Asset Backed Securities
Barren Q2 suggests autumn opportunity in ABS
European ABS issuers largely held off on printing new deals in Q2 as broader market volatility saw spreads widen, but we are already seeing more investor-friendly structures and many favoured names are likely to bring deals offering markedly higher yields when activity picks up again.
Why are CLOs pricing in a worse recession than Moody’s?
With yields on B rated CLO bonds now as high as 18%, Elena Rinaldi looks at various scenarios for corporate default rates and questions why investors are overshooting even the most pessimistic scenarios.
Liquidity is expensive, but it’s there
European ABS and CLOs had a turbulent Q2 as broader macro headwinds sparked heavy selling, but investors have made good use of direct trading to pick up bonds at prices not seen since Europe’s sovereign debt crisis.
BB CLOs approaching 12% yield
Aza Teeuwen explains how market moves have impacted BB CLOs and looks at historic trends analysing their behaviour during crisis scenarios.
Global ABS: A cloudy outlook from sunny Barcelona
After two COVID-hit years last week the European ABS market decamped once again to Barcelona for the 26th annual AFME & IMN Global ABS conference.
ABS spreads are pricing in a lot of downside
In fast-moving markets there is no perfect time to provide an update on valuations.
The early bird catches the MPR worm
Inflation rates have been rising for over a year now. While the increasing levels may eventually moderate, inflation is still likely to be with us for some time, especially with the Russian invasion of Ukraine exacerbating post-Covid supply constraints.
Value has returned to AAA CLOs
We can debate whether the European Central Bank is behind the curve or not, but Christine Lagarde says rates will be in non-negative territory by September.
CLOs have the fundamentals to absorb recession
As inflation continues to outstay its welcome in the global economy, we have previously discussed the impact of rising input costs on corporates and how crucial pricing power can be in such a challenging environment.
Growing CRE ABS offers diversification and yield
CRE ABS offers conservatively structured debt features, with generally short duration exposure and a spread premium rewarding the more intensive underwriting and due diligence required.
UK sub-prime lending raises ESG concerns
Last week Oodle Financial Services successfully priced its fifth UK Auto ABS transaction, Dowson 2022-1.