Investors Are at Their Most Negative on European ABS Since 2009

Britain's vote to leave the European Union is the latest impediment to the recovery of Europe's asset-backed securities market.
Photographer: Tomohiro Ohsumi/Bloomberg

The world was a very different place last time investors felt this negatively about Europe's asset-backed securities. 

Treasury yields were above three percent, the pound was one of the world's best performing major currencies, and securitization was still a dirty word. The asset-backed security, a poster child for the causes of the recent financial crisis, was denounced as a toxic product polluting investor portfolios and contaminating banks' balance sheets.

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