Investors crowd esoteric ABS after Fed policy update

By Jennifer Kang
01 Sep 2020

Investors are proving eager to get their hands on esoteric asset classes like container and timeshare ABS, with a surge in demand prompted by the Federal Reserve signalling its intention to keep rates low for the foreseeable future.

The Federal Reserve announced last week that it will allow inflation to run higher than the long standing 2% rate, which signals that interest rates are likely to remain at or near zero through at least the next 12-18 months. 

Coupled with tight spreads in the securitization market, ...

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