Taper talk alone won't spook the ABS market this time

Taper talk alone won't spook the ABS market this time

Jennifer Kang

July 06, 2021 06:00 PM

PA_Jerome_Powell_575x375 — (201202) -- WASHINGTON, D.C., Dec. 2, 2020 (Xinhua) -- U.S. Federal Reserve Chairman Jerome Powell testifies at a hearing before the U.S. Senate Committee on Banking, Housing, and Urban Affairs on Capitol Hill in Washington, D.C., the United States, Dec. 1, 2020. Powell said Tuesday that economic activity in the U.S. has continued to recover from its depressed second-quarter level, but momentum has slowed down in recent months. (Susan Walsh/Pool via Xinhua) | unreguser/Xinhua News Agency/PA Images

When the Federal Reserve shocked the capital markets in June with news that it is bringing forward potential rate hikes to 2023, ABS bonds didn’t budge. With the 2013 taper tantrum and new perspective on inflation behind us, it’s going to take more than words to cause a pull back in the red hot securitization market.

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Topics

GC View Securitization ABS Comment EM and The Cover Comment United States Americas North America

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Jennifer Kang