Asset-Backed Securities Quarterly Update – January 2026

TwentyFour
Watch 4 min

Douglas Charleston, Partner, Co-Head of ABS, highlights 2025 as another year in which European ABS delivered solid positive returns over risk-free rates, with lower-than-expected volatility despite ongoing geopolitical uncertainty.


 

Key takeaways

  • The European ABS market delivered another year of solid positive returns over risk-free rates, with lower-than-expected volatility despite geopolitical uncertainty.
  • US credit events involving Tricolour and First Brands raised concerns over the proliferation of private markets and potential contagion risk.
  • We expect 2026 to start strong, the visible supply pipeline will keep investors engaged and is broadly expected to surpass 2025, while we anticipate demand will continue to keep pace.

 

 

 

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