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    An introduction to asset-backed securities

    An introduction to asset-backed securities

    18 March 2025 Fixed income, Solutions

    This paper aims to provide an entry level introduction to what asset-backed securities are, how they’re constructed, and how they work.

    We explain some of the features of creating ABS including pooling, securitisation, and tranching, before taking the reader through the cashflow waterfall process of how they work.

    The ABS market is diverse and spread across a broad geography and is surprisingly large. The market can carry attractive levels of yield compared to conventional corporate bonds with similar credit ratings.

    Insight has extensive experience and a long history of managing global ABS portfolio with a team dedicated to managing the ABS asset class.

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