Manulife Investment Management -Mon, 09/09/2024 - 18:17

Opportunities in ABS Markets

Asset backed securities (ABS) markets allow investors to gain exposure to real economy assets offering a range of risk profiles which have the potential to produce relatively high, stable yields and offer capital protection due to their collateralized nature.

The ABS universe is large enough to give investors geographic and sector diversity. Figure 1 below shows the sector split across this US$4.3 trillion market in the US and Europe. This sector variety allows sophisticated investors to tailor risk and return levels to match a range of investment objectives and time horizons.

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