In this episode of the altii-Interview, we explore the resilience of the Asset-Backed Securities (ABS) market in times of economic uncertainty. Our guest, Egbert Bronsema, Senior Portfolio Manager at Aegon European ABS Fund, shares valuable insights into how ABS investments continue to provide stable returns despite turbulent market conditions.
Key Topics Discussed:
- ABS Market Stability: How ABS securities performed amid rising interest rates and economic fluctuations.
- Interest Rate Impact: Why some banks tightened credit conditions despite rate cuts.
- Consumer Resilience: How European consumers maintained financial stability despite inflation and cost-of-living pressures.
- Spread Trends: Observations on the narrowing of spreads and increased ABS issuances by banks.
- Regional Market Dynamics: How the ECB’s unified interest rate policy affects different ABS markets across Europe.
- ABS vs. Fixed Income: Why ABS securities, with their variable rate structure, fared better in volatile conditions.
- Post-COVID Savings Boom: The unexpected rise in consumer savings across Europe and its impact on ABS markets.
Why You Should Listen:
If you’re an investor, financial professional, or market enthusiast looking to understand the role of ABS in portfolio diversification and risk management, this episode provides crucial insights into the current and future state of the market.
Picture © Aegon