An introduction to asset-backed securities | Insight Investment

"Asset-backed securities (ABS) are inherently complex – but we believe they can represent a compelling opportunity."

Many investors look to ABS for the potential benefits they bring to a portfolio, such as higher yields than corporate bonds of comparable credit risk. But what exactly are ABS, and how can they offer such appealing characteristics?

In our introduction to the asset class, we explain how these securities are created, how they work, and why investors can use them to target a specific risk/reward profile – whether they are looking to achieve specific return targets or to diversify an existing portfolio.