We offer a range of strategies investing in the ABS market managed for different risk appetites, from AAA and high-grade portfolios and mandates to high yield and illiquid options.
Also known as securitised debt, asset backed securities (ABS) are public bonds backed by a specified pool of underlying loans, typically residential or commercial mortgages or personal loans issued by UK and European banks.
ABSs in Europe are usually floating-rate securities offering superior prospective returns to similarly rated government and corporate bonds. Relatively high returns and predictable income plus security against ring-fenced assets make these an attractive proposition for institutional investors. They also offer the flexibility of allowing investors to tailor their portfolios to a specific risk or return appetite.
M&G Investments are one of the largest managers in the ABS market, with a track record going back over 20 years and holdings of more than €20 billion.