10 min read 12 Jan 21
As with most areas of financial markets, COVID-19 shaped events for European asset-backed securities (ABS) in 2020. The asset class demonstrated its fundamental resilience, recovering strongly from the second quarter onwards, despite the lack of central bank intervention compared to other areas of public debt.
We review a historic year of macro volatility from the perspective of European ABS investing and provide our outlook on 2021, which in our view could bring increased issuance volumes and opportunities for investors to diversify their fixed income allocations.
The value of investments will fluctuate, which will cause prices to fall as well as rise and investors may not get back the original amount they invested.