Asset Backed Securities

A mature and attractive asset class.

ABS is a core capability of Aegon Asset Management

Asset-backed securities (ABS) represent securities backed by specific collateral, with the largest sector being residential mortgages (RMBS). Contrary to their reputation, default rates on European ABS during the financial crisis were significantly lower than on similarly rated corporate bonds.

 

All data as at 31 March 2024.

Highly experienced

Investing in European ABS since 2001, and in US ABS since the late 1980s.

Dedicated team

One of the largest dedicated ABS teams in Europe with 20+ experienced investment professionals.

AUM

Manage €16.4* billion in ABS globally, of which €9.3 billion is in European ABS.

ESG integration

Fully integrated in our ABS investment process.

Introduction to ABS

In this video, Egbert Bronsema, Senior Investment Manager in the Alternative Fixed Income team, provides an overview of the ABS asset class and the Aegon AM experience in managing ABS portfolios.

Egbert discusses the opportunity set European ABS offers investors and how it fits into portfolios, highlighting the asset class floating rate nature, low correlations with traditional asset classes and low interest rate sensitivity. He also explains why European ABS yields are higher compared to similarly rated instruments while liquidity for the asset class is comparable to corporate investment grade credit.

European ABS Outlook

In this video Egbert Bronsema, Senior Investment Manager in the Alternative Fixed Income team at Aegon AM, discusses the market volatility we have seen in recent years as inflation crept up, central banks increased interest rates at an unprecedented pace, geopolitical risks surfaced, and several wars all fed into market sentiment.

With the uncertain outlook for the European economy and the way central banks will act, Egbert explains why high-carry products with low interest rate sensitivity are set to outperform.

How our clients are incorporating ABS into their asset allocation
Attractive risk/return
Lower sensitivity to interest rates
Seeking alternative investments
Effective diversification
Transparency of collateral
Overview of our key European ABS strategies

At Aegon AM we offer a range of ABS strategies to suit various investor preferences for yield and risk. Past performance does not predict future returns.

All data as of 29 March, 2024. 

 

  EUROPEAN AAA STRATEGY* EUROPEAN ABS FUND >> ABS OPPORTUNITY FUND >>
Average credit quality AAA AA/A BB
Yield (in Euro) 5.08% 6.08% 9.18%
Spread (in Euro) 114 bps 194 bps 518 bps
Effective duration 0.25 0.31 0.17
Spread duration 4.00 2.91 4.92
Liquidity Daily Daily Daily
Investment vehicle Segregated UCITS, segregated Irish QIF
Fund pages   View fund page >> View fund page >>

*Product to be launched in 2024.

Download our full ABS range overview