What does ABS performance tell us about economic health?

Recent economic news may have created a sense of uncertainty across Europe, but Ellie Aylen from our Asset-Backed Securities (ABS) team offers a more optimistic view. According to low-level data from the Bank of England (BoE) and the European Central Bank (ECB), the actual performance is much more reassuring than what the headlines might suggest.

The robust labour market observed in the first half of 2024 has led to increased savings rates in the UK and Europe, now exceeding pre-Covid levels, while consumer behaviour remains strong, with consistent payment rates and stable delinquency levels.

Looking ahead, Ellie believes the outlook for European Asset-Backed Securities is positive, with moderate growth anticipated for the rest of the year.