Reported 4 months ago
Asset-backed debt sales have reached over $175 billion in the US and Europe during the first half of 2024, showing a significant increase from previous years. These deals, which involve packaging loans into bond-like instruments secured by various assets, have become popular among banks seeking to manage risk and refinance loans. The trend is driven by a general credit rally and expectations of rate cuts in the latter half of the year, making ABS deals appealing due to their high yields in a floating-rate asset environment. The issuance pace in 2024 indicates it might become the best post-crisis year so far, with continued strong interest from investors and issuers.
Source: YAHOO