Asset-Backed Securities Quarterly Update – October 2024

TwentyFour

Watch 5 min

10 Oct 2024

As the third quarter of 2024 comes to a close, TwentyFour Asset Management's Aza Teeuwen reflects on what this has meant for the Asset-Backed Securities (ABS) team. Not only were volumes across European ABS elevated throughout July and August, we also saw €34 billion in primary issuance – a significant increase from previous years.

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

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About the author

Aza Teeuwen

Aza Teeuwen

Partner, Portfolio Management

About the author

Aza Teeuwen

Aza Teeuwen

Partner, Portfolio Management

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Asset-Backed Securities CLOs Fixed Income Market Update TwentyFour

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TwentyFour

Based in London and New York, TwentyFour is a specialist active fixed income manager with a strong reputation for performance, expertise and innovation. Offering Multi-Sector, Investment Grade, Asset-Backed Securities and Sustainable strategies, TwentyFour targets the best risk-adjusted returns from across the global bond markets.

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