From Fried Food to Gym Fees, It’s All Securitized Now
- Sales of U.S. asset-backed securities hit a post-crisis peak
- Investors are drawn to higher yields and inflation hedge
Photographer: WS photography/Moment RF/Getty Images
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Bankers are repackaging everything from fast food franchises to fitness-center fees into bonds at the fastest clip since the global financial crisis as investors chase yield and inflation protection.
This year’s sales of U.S. asset-backed securities have already surpassed $300 billion, according to data compiled by Bloomberg -- and more is expected by year-end. Post-crisis issuance records have also been set in private-label commercial mortgage bonds and collateralized loan obligations, which are also seen accelerating.