Asset-Backed Securities Quarterly Update – January 2023

Higher starting yields have unsurprisingly driven a resurgence in demand for multi-asset credit strategies, which may be well placed to take advantage of a structural backdrop that we think will be a tailwind for credit assets in the medium term.

When government finances deteriorate, how much of that risk should be priced into the borrowing costs of otherwise healthy businesses?

TwentyFour Asset Management’s Felicity Juckes reflects on a quarter shaped by renewed geopolitical tensions, higher energy prices and government bond volatility.

TwentyFour Asset Management’s Gordon Shannon reflects on a quarter shaped by higher energy prices, persistent inflation and government bond volatility.

TwentyFour Asset Management’s Pauline Quirin reflects on a quarter in which securitised markets remained resilient despite interest rate volatility and growing concerns around inflation.

Fixed income investors have had to adjust to a dramatic shift in market conditions as the year has evolved.