Secured Credit Insight: seniority and security at no extra cost

07/12/2016

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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.

Summary points:

  • 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

 

 

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.

Past performance is not a guide to future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

The information in this article does not qualify as an investment recommendation.

For promotional purposes.

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