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 – October 2024
As the third quarter of 2024 comes to a close, TwentyFour Asset Management's Aza Teeuwen reflects on what this has meant for the Asset-Backed Securities (ABS) team. Not only were volumes across European ABS elevated throughout July and August, we also saw €34 billion in primary issuance – a significant increase from previous years.
Key takeaways
Asset-Backed Securities market performance
- We saw €34bn of primary issuance, a significant pick up from previous years
- Strong book coverage in RMBS and ABS has emerged as a main trend
- The European CLO pipeline was slow to materialise, however quickly caught up with €35bn of new issuance and is on track for a post Global Financial Crisis record year
Market outlook
- Our outlook remains constructive on both volumes and spreads for the remainder of the year
- We believe that even in a rate cutting environment European ABS and CLOs continue to look attractive versus traditional corporate bonds
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