European ABS 2023

As we enter 2023, we think there is good reason for fixed income investors to be positive. This is especially true in investment grade where issuers are typically higher quality, less leveraged and generally have a lower cost of funding than HY issuers.

TwentyFour Portfolio Manager, George Curtis, provides an update on the Multi-Sector teams current investment themes and macro outlook before looking at the performance and portfolio positioning of the Vontobel Fund – TwentyFour Strategic Income Fund.

While yields have soared in recent months and created a broad buying opportunity in fixed income, Aza Teeuwen says investors should look at floating rate bonds to benefit from higher coupons today.

With commercial real estate seen to be in the eye of the storm as interest rates rise, Aza Teeuwen looks at the potential impact on CMBS and CRE loans and highlights where valuations could be most at risk.

European ABS is enjoying a spurt of new issuance and a parallel rally in spreads, with investors having entered the new year with cash to invest and buoyed by renewed hope around inflation and monetary policy, says Pauline Quirin.

TwentyFour Portfolio Manager, Pierre Beniguel, discusses recent market developments in Q1 2023 and provides his outlook for the year ahead.

TwentyFour Partner and Portfolio Manager, Douglas Charleston, describes the developments of the ABS market in Q1 2023.

TwentyFour AM portfolio manager Jack Daley discusses Q1 performance for Investment Grade markets and provides his outlook for 2023.

While European ABS was not immune to negative returns amid the considerable fixed income headwinds of 2022, it gave investors largely what they look to this allocation for – lower volatility and better performance than mainstream bonds.