Expect a Few Bumps, but No Accidents, in Auto ABS
In this paper, the Liquidity Solutions team defines benefits of holding asset-backed securities (ABS) in fixed-income portfolios and focuses on the attractive fundamentals of automotive sector ABS in today’s markets.
Authors
9/6/2023
7 min read
Topic
Fixed Income
Key takeaways
- Asset-backed securities (ABS) may provide an attractive yield advantage and capital preservation through structural protection.
- Consumer fundamentals are normalizing from record levels and remain supportive, and consumers’ priority of payments aligns with our preference for auto collateral.
- Our credit due diligence process is multi-level, with a comprehensive understanding and stress testing at the collateral, loan, and transaction levels.
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