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Exploring the securitization trends shaping Global ABS 2021

Ahead of AFME & IMN’s 25th Anniversary Global ABS conference this September, IMN spoke to Rob Ford of TwentyFour Asset Management and the AFME securitization board about what’s happening in the market, the key trends he expects to see in the remainder of 2021, and the themes likely to be discussed and debated at the event. Here are some extracts from the interview:

IMN: Now that parts of the world are starting to round the corner in regard to COVID-19, what is recovery going to look like for the ABS market?

Rob Ford: That’s a really interesting question. I actually find the current situation a little bizarre. Here we are, still in the midst of a number of restrictions, particularly physical ones, and still with some uncertainty about the timing and scope of opening up going forward. But it does seem that, hopefully, we’re nearing the end and so it makes total sense that you’re asking about how the recovery might shape up. Actually though, we’ve been in the middle of pandemic for such a long time that, arguably, that recovery started almost a year ago and has been ongoing ever since.

If we recap very quickly, when restrictions…

IMN: Would you consider the current tight spreads to be an abnormality or is this the new normal?

Rob Ford: I do think we’re possibly at a tipping point. Right now, we’re essentially at the tightest levels we’ve seen since the financial crisis, the tight end of the broad range that we’ve traded in for the last ten years or so. We have been at this point before, 2018 for example, and we’ve bounced off the widest a few times as well, like in the middle of last year at the height of the pandemic. But the question this time is whether the technical factors will break us through this level and whether we then establish a new range.

There is no doubt that in many ways securitization is…

Click here to listen to the full podcast or here to read the full transcript of the interview.

About the 25th Anniversary Global ABS conference

The 25th Anniversary Global ABS takes place as a blended physical and digital gathering this September. All in-person conference activities will take place 27-28 September in London, UK and will be supported by a virtual environment from 3-28 September.

Click here to join your clients, colleagues and peers in the European securitization industry for another must-attend conference.

 

IMN GlobalABS Podcast Rob Ford

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