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Exotic Bond Issuers Flee to Private Markets as Uncertainty Swirls

  • Some pockets of non-traditional ABS are down year to date
  • Borrowers turn to bank loans and private placements instead

Companies that issue exotic bonds are having a tough time getting deals done as macro-economic uncertainty rises and investors seek refuge in plain vanilla transactions. So, they are turning to a more traditional ally: private debt. 

Borrowers in the esoteric ABS market repackage unusual assets into securities -- ranging from royalties to aircraft and shipping containers -- as opposed to conventional debt like credit cards or auto loans.