TwentyFour’s ABS chief on skirting ‘overbaked’ deals as issuance booms
Some new issuers are pricing tighter than is sensible, says Aza Teeuwen
In 17 years of buying European asset-backed securities (ABS), Aza Teeuwen has rarely been as busy as he is right now. The usual summer lull in primary markets didn’t materialise this year. ABS issuance has already outstripped the whole of 2023 by 80%.
The issuance glut is a reason for optimism, Teeuwen says. But he’s also cautious. “Spreads have been rallying quite quickly. But some deals by newer issuers have been a bit overbaked.”
Teeuwen, who heads ABS at £20 billion ($26.8 billion) fixed
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