Despite policy rate cuts remaining elusive, several tailwinds are boosting a resilient U.S. economy. And while the Fed continues to navigate a potential soft landing, global central banks are actively transitioning onto a path of easing policy.
Credit markets have had a comparatively easy ride so far in 2024, and investment-grade corporate spreads are now at some of their tightest levels for a long time. But investors must guard against complacency.
Securitisation performs a vital role in capital markets and asset-backed securities have historically been a core holding for insurance companies. This article revisits the investment thesis for ABS and explores why the stage may be set for something of a renaissance.