Asset-Backed Securities Quarterly Update – October 2022
TwentyFour Partner and Portfolio Manager, Douglas Charleston, explains how ABS markets have performed in Q3 2022 and provides his outlook for the rest of the year.
Insights Topic
Asset Backed Securities
Where are CLOs trading after the Truss Tantrum?
With the higher rated tranches of euro CLOs popular with UK pension funds, Aza Teeuwen looks at how the market coped with heavy selling in recent days and notes investment grade CLO bonds are now yielding close to 10%.
Is the UK mortgage market ‘closed’?
With UK banks pulling mortgages from the market, Douglas Charleston explains why this doesn’t reflect any fundamental weakness in the UK banking sector, but rather the uncertainty created by the sharp moves in UK rates.
Floating rate demand driving deals as ABS reopens
Demand for floating rate assets has driven a strong reopening of the European ABS primary market, and is drawing new investors to the asset class, says Kevin Law.
ESG in ABS Update
How has ESG in the ABS market changed over the last year? Pauline Quirin talks through some of the positive development she's seen and the main challenges facing the ABS market.
Barren Q2 suggests autumn opportunity in ABS
European ABS issuers largely held off on printing new deals in Q2 as broader market volatility saw spreads widen, but we are already seeing more investor-friendly structures and many favoured names are likely to bring deals offering markedly higher yields when activity picks up again.
Asset-Backed Securities Quarterly Update – July 2022
Douglas Charleston looks at the development of the European ABS market in the second quarter of 2022 and explains what this could mean for investors going forward.
Why are CLOs pricing in a worse recession than Moody’s?
With yields on B rated CLO bonds now as high as 18%, Elena Rinaldi looks at various scenarios for corporate default rates and questions why investors are overshooting even the most pessimistic scenarios.
Liquidity is expensive, but it’s there
European ABS and CLOs had a turbulent Q2 as broader macro headwinds sparked heavy selling, but investors have made good use of direct trading to pick up bonds at prices not seen since Europe’s sovereign debt crisis.
BB CLOs approaching 12% yield
Aza Teeuwen explains how market moves have impacted BB CLOs and looks at historic trends analysing their behaviour during crisis scenarios.
Global ABS: A cloudy outlook from sunny Barcelona
After two COVID-hit years last week the European ABS market decamped once again to Barcelona for the 26th annual AFME & IMN Global ABS conference.
ABS spreads are pricing in a lot of downside
In fast-moving markets there is no perfect time to provide an update on valuations.