Asset-Backed Securities Quarterly Update – July 2025

Key takeaways

• April proved to be particularly turbulent following President Trump’s announcement of new tariffs, which triggered a broad-based global sell-off.
• The European Commission introduced regulatory proposals featuring several positive changes, from lower capital charges on securitisations held by banks to enhancements of the SRT framework.
• Despite ongoing uncertainty around monetary policy, the consistent high income provided by ABS should remain a key driver of outperformance for the asset class.