Asset-Backed Securities
TwentyFour’s ABS funds cover the whole risk spectrum available, from enhanced cash to direct asset-backed lending.
Portfolio Insights: Asset-Backed Securities – April 2026
Aza Teeuwen, Partner and Co-Head of ABS, reflects on a volatile start to 2026, and explains why European Asset-Backed Securities (ABS) continues to provide relative stability over the quarter, particularly in investment grade.
Key takeaways
- The escalation of the US‑Israeli conflict with Iran in March added a significant geopolitical shock, pushing oil prices sharply higher, reigniting inflation concerns and driving renewed rates volatility. This had clear implications for Collateralised Loan Obligations (CLOs) and broader securitised markets.
- European securitisation supply totalled around €42 billion over the quarter, led by CLOs and consumer and auto ABS, followed by Residential mortgage-backed securities (RMBS).
- Looking ahead, the near‑term outlook remains heavily dependent on how the Middle East situation evolves. With the risk of oil prices staying elevated and inflation uncertainty persisting, the case for floating‑rate assets remains strong.
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