Asset Backed Securities

TwentyFour Asset Management’s Elena Rinaldi reflects on a quarter in which Asset-Backed Securities (ABS) and Collateralised Loan Obligation (CLOs) markets demonstrated resilience despite heightened geopolitical and market volatility.

Collateralised loan obligations (CLOs) are securitisations backed by a large pool of senior secured corporate loans, which are financed partly via selling bonds to investors.

Last week marked a milestone for the structured finance industry with a record 6,003 market participants gathered in Barcelona for the 30th Global Asset-Backed Securities (ABS) conference.

With more investors turning to asset-backed securities (ABS) to diversify their fixed income holdings, Doug Charleston explains why he believes TwentyFour Asset Management can be the ideal partner for those who are new to the asset class or considering a more significant allocation.

Fixed income markets have shown a degree of resilience this year, with credit spreads remaining tight and demand for income holding up, despite ongoing geopolitical tension, inflation uncertainty and growing fiscal concerns.

With the Middle East conflict clouding the outlook for inflation and interest rates, TwentyFour Asset Management’s Doug Charleston explains why asset-backed securities (ABS) could be a valuable diversifier for fixed income investors looking to deal with further volatility.

TwentyFour Asset Management's Aza Teeuwen reflects on a volatile start to 2026, and explains why European ABS continues to provide relative stability over the quarter, particularly in investment grade.

Doug Charleston, Co-Head ABS at TwentyFour Asset Management, explains why more investors could benefit from the enhanced yields available in asset-backed securities (ABS).

Collateralised Loan Obligation (CLO) markets have repriced meaningfully over the past few weeks, with a sell-off in software-related loans leading to even more spread “tiering” as investors differentiate between managers with lower exposure to stressed sectors and those carrying more tail risk.

Recent developments involving Federal Reserve (Fed) Chair Jerome Powell have raised fresh questions around central bank independence, the politicisation of monetary policy, and the future of Fed leadership, particularly with his term as Chair due to expire in May 2026.

After a constructive 2025 for fixed income markets, marked by falling interest rates and steady global growth, investors are looking ahead to what’s in store for 2026.

Historically, one of the key sources of stability in European ABS has been ratings. The market has long seen upgrades consistently outnumber downgrades, even during periods of stress, most recently during Covid-19.