Three reasons why to invest in Asset Backed Securities (ABS)

Enhance risk/return profile

Adding European ABS, also referred to as alternative ABS, as a replacement for part of the credit portfolio may enhance the risk-return profile.

Protection against rising interest rates

Many European ABS bonds have a floating rate coupon and short duration profile, which can reduce interest rate risk and provide positive total return potential in a rising rate environment.

Consumer exposure

European ABS can provide consumer-related exposure and enhanced diversification potential in addition to core fixed income portfolio

Our capabilities

Aegon AM has been investing in European ABS, or alternative ABS, since 2001. Using a research-intensive process, the team actively searches for attractive opportunities across the full ABS spectrum. The strategy invests primarily in residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS) as well as ABS collateralized by consumer loans, car loans, credit card loans, whole business (repackaging of companies or company divisions) and other asset-backed securities. The investment team aims to add value through active selection of issuers, collaterals, sectors and countries.