Late cycle ABS holding up, amid fears of fleeting liquidity

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By Max Adams
12 Jun 2019

The securitization market is in a good position from both the perspective of credit quality and structure as the credit cycle heads into late innings, an industry panel heard on Wednesday, but there were fears over the possibility of a sudden liquidity crisis when the market turns.

“Credit fundamentals and the structures work. The thing that worries me is liquidity,” said Janet Oram, head of European ABS at BlackRock. “My feeling is that there is a lot of money that could go away... and we don’t have the depth of a secondary market to absorb ...

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