ABS Update - January 27th 2021

Market Update

With investor sentiment holding firm on the prospect of COVID-19 vaccines allowing a more normal economic environment in 2021, we’ve seen credit spreads continue to tighten and expect European ABS spreads to make up more ground on mainstream markets, having missed out on some of the 2020 rally due largely to a lack of direct central bank support.

In this update, TwentyFour Partner and Portfolio Manager Ben Hayward addresses some of the key reasons he thinks investors should consider allocating to ABS sooner rather than later. From inflation to lower-than-expected default rates, Ben dives into the effect these developments have had on ABS and explains how the asset class can be used to look for yield opportunities and embrace pro-cyclicality.

The session is available on-demand and can be viewed below.