Auto spreads have room to tighten

By Matthew Scully
12 Jun 2014

Already tight spreads on senior and mezzanine auto ABS tranches have plenty of room to squeeze tighter, said European auto investors at IMN’s Global ABS conference on Wednesday.

Strong performance and a lack of extension risk are appealing elements in European auto ABS, and investors searching for yield across fixed income continue to see it as the best-yielding asset class for the credit risk, a panel of investors agreed.

“I think spreads can tighten significantly from here,” ...

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