Asset-backed securities

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Investing in a portfolio of asset-backed securities (ABS) provides exposure to an asset class with an attractive premium for complexity rather than additional credit risk. Our experienced team invests in a wide range of global asset-backed securities that benefit from a diversified pool of underlying collateral with strong investor covenants.

Our ABS capabilites can also be accessed on a segregated basis.

Features

Focus on liquidity management: funds have a high allocation to short-dated investments.

Diversification and high credit quality: the portfolios are highly diversified, with the majority of investments expected to have a credit rating of AAA or AA or equivalent.

Contractual cash flows: ABS typically offer scheduled payments, which enables investors to manage their cash flow requirements more effectively.

Bankruptcy and sovereign remote: the investor’s credit risk is related to the underlying collateral and not related to the financial health of the originating bank or sovereign. 

Insulation from interest rate risk: the floating-rate nature of the investments can mitigate the impact of future interest rate rises.

Effective return-seeking component of an LDI strategy: may be used to help generate a return potentially above the funding cost of a swap or gilt-based hedging strategy.

Important note: Following a review we have removed the previously stated fixed spread outperformance targets from marketing materials related to Insight Liquid ABS Fund, Insight High Grade ABS Fund and IIFIG Global ABS Fund. The management approach has not changed.

Fixed income team in numbers

  • 119 Fixed income investment professionals globally
  • 17years Average experience of fixed income team
  • €172.7bn fixed income assets

As at 31 December 2020. Assets under management (AUM) are represented by the value of cash securities and other economic exposure managed for clients.

Application and account opening forms

Awards

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Fund and strategy profiles

Prospectuses and scheme documents

Recent thinking

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Important information

The value of investments and any income from them will fluctuate and is not guaranteed (this may be partly due to exchange rate fluctuations). Investors may not get back the full amount invested. Past performance is not a guide to future performance. 

Investments in bonds are affected by interest rates and inflation. For a full list of applicable risks, and before investing, investors should refer to the Prospectus or other offering documents. Please also refer to the fund profile, located under fund and strategy profiles, for the specific risks associated with these funds.

The Global ABS Fund meets the definition of covered funds under Volcker regulations.

Any losses in the fund will be borne solely by investors in the fund and not by BNY Mellon (including its affiliates); therefore BNY Mellon's losses in the fund will be limited to losses attributable to the ownership interests in the fund held by BNY Mellon and any affiliate in its capacity as an investor in the fund or as beneficiary of a restricted profit interest held by BNY Mellon or any affiliate.

Ownership interests in the fund are not insured by the FDIC, are not deposits, obligations of, or endorsed or guaranteed in any way, by BNY Mellon. Neither BNY Mellon nor any of its controlled affiliates (which includes the fund's general manager/ managing partner/ investment adviser), may directly or indirectly, guarantee, assume, or otherwise insure the obligations or performance of the fund or of any other covered fund in which the fund invests.

Investors should read the fund's offering documents before investing in the fund. Information about the role of BNY Mellon, its controlled affiliates, and their employees in sponsoring or providing services to the fund are described in the Volcker Rule section of the offering documents.