Finance
Aegon Is Betting on Sustainability-Minded Securitized Credit
- Expects deals from student loans, solar loans to win long term
- ESG is more important in ABS says portfolio manager Jose Pluto
Aegon headquarters in the Hague, Netherlands.
Photographer: Jock Fistick
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Issuers of structured bonds backed by consumer debt can boost their resilience and outperform in the long run by focusing on sustainability, according to Aegon Asset Management.
Deals backed by private student loans, communications infrastructure and solar loans and leases that are aligned with sustainability goals will outperform, even as consumers struggle to pay bills because of coronavirus, said Jose Pluto, senior structured finance analyst and portfolio manager at Aegon. Those sectors have lower exposure to industries worse hit by the pandemic, like energy, retail, hospitality and transportation, he added.