Bond Drought Hits Buyers in $2 Trillion ABS Market: Euro Credit
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The $2 trillion asset-backed securities market in Europe is out of kilter as growing demand for the debt, which policy makers are promoting as a savior for the region’s economy, meets shrinking supply.
Investors have been pouring money into ABS funds managed by Amundi, the region’s largest asset manager, Credit Suisse Group AG, Julius Baer Group Ltd. and YCAP Asset Management, which have seen assets grow as much as 77 percent this year, according to data compiled by Bloomberg. At the same time, sales of the debt shrank to 23.6 billion euros ($32.3 billion), the least in five years, JPMorgan Chase & Co. data show.