Amundi: ABS bonds are attracting renewed attention from investors
The European Commission has identified the development of securitizations as one of its top priorities for 2025, with the aim of facilitating strategic financing for the EU. A review of the regulations governing these instruments is already underway to 'stimulate private financing and further strengthen competitiveness'.
This highly favorable context reinforces the appeal of securitizations within a bond allocation: with their low sensitivity to interest rate movements and attractive spreads, ABS bonds are attracting renewed attention from investors.
Last year, Amundi, the leading European asset manager , launched the fund Amundi ABS AAA to answer institutional and retail investors seeking a diversification in the Fixed Income space while maintaining the highest credit quality. The fund has collected more than 100 million euros since launch demonstrating investors’ appetite.
With Amundi ABS flagship fund, launched in 2006 and now with 1.1Bn€ of assets under management, Amundi is one of the largest European ABS asset managers and wants to keep growing by offering highly relevant solutions to investors in this asset class.
Managed by Hubert Vannier, head of securitization at Amundi, and a team of 2 experienced portfolio managers and 3 analysts - overseeing approximately €7 billion in assets under management - the Fund's objective is to achieve, over a 12-month investment horizon, a performance superior to its benchmark index, 70% Bloomberg Pan European Floating ABS Bond Index AAA + 30% €STR capitalised daily for units denominated in euros. The fund also benefits from a Swiss Franc share. The robust investment process is complemented by strong Environmental, Social and Governance integration, making it a responsible choice for socially conscious investors.
Amaury d’Orsay, Head of the Fixed Income platform at Amundi, said: 'The European ABS market presents a compelling investment opportunity due to its appealing spreads and low duration exposure, making it an attractive choice for investors seeking stability and yield. Recent regulatory changes are poised to benefit the European securitized market, while the fund's low correlation with traditional asset classes enhances portfolio diversification.'