What’s happening in IG European ABS?
Partner and Portfolio Manager Ben Hayward provides an update on the European ABS market.
Insights Topic
Asset Backed Securities
CLOs: Lessons From The Past (Part 2 – Stress Testing)
Clearly this shock/stress test is a severe scenario, but given the uncertainties that COVID-19 has thrown our way, as debt investors we would rather be overly conservative.
CLOs: Lessons From The Past
In recent weeks we’ve seen significant sell-offs across all asset classes as investors have been scrambling for liquidity. With most of Europe and the US effectively in lockdown, a recession looks to be inevitable and the question is what this will do to corporates’ ability to service and refinance their outstanding debt, especially for those in the sub-investment grade space.
Monument and European ABS update
It has been a challenging couple of weeks for obvious reasons.
TwentyFour ABS Investor Update Webinar
Partners and Portfolio Managers Ben Hayward and Doug Charleston provide an update on the TwentyFour Income Fund and TwentyFour Monument Bond Fund.
Italian Mortgages, Natwest and COVID-19
We noted with interest two headlines yesterday: Italy to suspend mortgage payments amid outbreak and RBS and NatWest offer mortgage breaks for customers affected by coronavirus
Slo-mo CLOs Could See Spreads Tighten
Given the material positive performance seen in other parts of the fixed income markets in 2019, the CLO relative value proposition now looks even more attractive.
TwentyFour Q1 Investor Update
CEO Mark Holman provides his outlook for credit markets in 2020, highlighting investment themes and sectors that still offer fixed income investors good relative value.
Asset Backed Securities - Quarterly update - January 2020
Ben Hayward looks at the Q4 performance for Asset Backed Securities and provides an outlook for the year ahead.
ABS Primary Slips Into Gear
We have already highlighted the blistering pace of bond sales in both Europe and the US, and this being met with apparently insatiable demand from fixed income investors. Since European ABS markets tend to lag broader fixed income, it seems fitting that we have had to wait another week before seeing that primary machine start to accelerate.
Trade, Brexit and Earnings an Unholy Trinity for Markets
It is not clear to us just how much more monetary easing will placate equity investors, and we see a real risk that when we enter the third quarter earnings season next week, company specific data from the bottom up will be more of a shock than the macro picture has been.
AAAs Don’t Yield 2.3%, Do They?
Rates risk is not something we concern ourselves with too much in the European ABS market, so normally news of inverted yield curves and 30-year US Treasury yields dropping below 2% would largely wash over us. This is because pretty much all ABS bonds are floating rate, so there is no duration. Or is there?