Summer Supply Creates Pricing Opportunity
It’s been an interesting week for European CLOs; one of our favourite picks in fixed income.
Insights Topic
Asset Backed Securities
Resurrection Of A Market
The last ten year period has seen supply from various parts of the ABS market ebb and flow.
Capital Relief Becoming More Interesting For Banks
For many years ABS has primarily been used as a funding tool for banks and other lenders.
Do You Remember ABS Market Volatility?
It seems a long time since the European ABS market saw any meaningful volatility.
Cautious Optimism in ABS
Nearly 4,000 international ABS market participants attended the Association for Financial Markets in Europe’s Global ABS Conference last week, the biggest attendance since the financial crisis.
ABS Risk Tiering
European ABS market performance and volatility have been remarkably stable since 2016, largely weathering broader credit weaknesses so far this year.
STS Revisions Fall Short of Game-changing
Last year we wrote about the forthcoming "STS" (Simple, Transparent and Standardised) regulation for securitisation, designed in part to harmonise eligibility and capital charges for ABS across the wider regulatory landscape.
Roll Down explained
Several times this year we have discussed the benefits of “roll down” in an environment that for fixed income investing is particularly unfriendly. We believe roll down gains will be one of the best ways to protect portfolios in 2018 from the rising rate curves that we have been experiencing so far.
CLOs 5 years on
Five years ago, the European CLO market restarted when Cairn issued the first post-crisis CLO in Europe – the start of the 2.0 market – and after a slow first year we have seen plenty more CLOs coming to market from a large mix of legacy and new managers.
Going it Alone
All good things must come to an end, and from today UK bank treasurers face life without the Term Funding Scheme (TFS).
Global Housing Update
As we provide lots of commentary on the maturing economic cycles and monetary policy across the globe, we thought it was worth highlighting some points from Fitch’s recently published Global Housing Update and its useful insights into how the global housing markets are faring.
Should We Worry About Consumer Credit?
As the credit cycle develops across different economies, our asset allocation changes to reflect that, and if it looks to be at a mature stage in a specific country then our natural focus on credit quality becomes more important; we are always trying to avoid next year’s problem credits, whether in the financial, corporate or securitised markets.