Asset-Backed Securities
TwentyFour’s ABS funds cover the whole risk spectrum available, from enhanced cash to direct asset-backed lending.
Asset-Backed Securities Quarterly Update – April 2025
As the first quarter of 2025 concludes, TwentyFour Asset Management’s Pauline Quirin shares her take on the strong performance of the securitisation market and insights for European ABS and Collateralised Loan Obligations (CLOs).
Key takeaways
Asset-backed securities market performance
- Strong start to 2025 for the securitisation market with spreads tightening and issuance accelerating, particularly in CLOs.
- European ABS and CLO issuance hit a record €37bn YTD.
- Recent macroeconomic concerns and volatility pushed AAA CLO spreads wider by 10 basis points (bp).
Market outlook
- Attractive opportunities in UK prime Residential mortgage-backed securities (RMBS), Australian ABS and European BB CLOs.
- Asset-backed finance positioned for further growth as securitisation gains traction amongst lenders.
- Strong returns expected to continue, though volatility will likely remain elevated.
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