Asset-Backed Securities Quarterly Update – October 2024

Key takeaways

Asset-Backed Securities market performance

• We saw €34bn of primary issuance, a significant pick up from previous years
• Strong book coverage in RMBS and ABS has emerged as a main trend 
• The European CLO pipeline was slow to materialise, however quickly caught up with €35bn of new issuance and is on track for a post Global Financial Crisis record year

Market outlook

• Our outlook remains constructive on both volumes and spreads for the remainder of the year
• We believe that even in a rate cutting environment European ABS and CLOs continue to look attractive versus traditional corporate bonds