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Our views 18 January 2023

Harnessing the inefficiencies in ABS investing

5 min read

Shalin Shah, Senior Fund Manager and Martin Foden, Head of Sterling Credit Research, explore the inefficiencies, risks, and opportunities that elude many investors in the securitisation market.

How do you define ABS investing?

Martin: I think since the financial crisis, the definition of Asset Backed Securities (ABS) has become narrowly focused on the securitisation market. However, our definition is broader and encompasses any security that has asset backing to support the interest payments and realisation of principal.

As a result, we invest across secured corporate bonds blended with securitisations to utilise the best of both worlds. Our RL Diversified ABS Fund is the purest form of that and will have the highest allocation to ABS bonds, covering both those asset classes.

Read in full: Harnessing the inefficiencies in ABS investing


This is a financial promotion and is not investment advice. The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.


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