ABS and its relevance in a soft landing environment
The growth of sustainable and ESG investing strategies show that asset owners are increasingly committed to ensuring that their capital is invested responsibly. In our opinion, European Asset Backed Securities offer an attractive alternative for investors looking for ESG friendly options within fixed income; not just as a result of the lack of ‘sin’ sectors within the asset class, but due to the granularity of ABS data and a strong regulatory framework around risk retention.
Over the last few years investors, industry bodies and regulators have joined forces to establish a level playing field within European ABS by improving ESG disclosures and setting guidelines for assessing ESG factors in securitisations. We have also seen a Green ABS market begin to emerge and more Article 8 compliant CLOs issued.
Our most recent Spotlight on ESG: Unlocking sustainable opportunities within ABS webinar, hosted by Pauline Quirin and Elena Rinaldi, explored European ABS from an ESG perspective.
The update was followed by a Q&A session.