In the latest Secured Credit Insight, Colin Fleury, Head of Secured Credit, explores the opportunities within secured loans and asset-backed securities (ABS), explaining where investors can benefit from investment into these markets. In addition, an assessment is made of the US sub-prime auto loans sector, which has been receiving increasing attention and coverage in the media.
- Seniority and security seem to be undervalued by sub-investment grade bond investors
- Favouring loans over bonds - with a preference for European loans
- Investment grade ABS continues to provide attractive relative valuations versus corporate bond equivalents
- Increased stress in the US sub-prime auto loans market is not a harbinger of darker times for the US ABS market
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