Offering you a choice of credit risk, returns, and interest paid monthly.
Access a Significant Market
The Asset Backed Securities (ABS) and Residential Mortgage Backed Securities (RMBS) markets, globally and domestically, are vast. Globally, S&P Global Ratings has forecasted 2024 issuance volume of ~USD 1 trillion.
In Australia, a very significant proportion of home loans, auto loans, trade receivables, personal loans and many other receivables are funded through these markets with outstanding of ~AUD 200 billion. Household names, including the four major banks, second tier banks, building societies and non-bank lenders use the ABS and RMBS markets, accessing investors from all parts of the world. For Australian regulated institutions, the issuance of ABS/RMBS is overseen by Australia’s banking regulator, APRA. Further, and with few exceptions, ABS and RMBS are rated by at least one of three global credit rating agencies.
What are ABS and RMBS?
Put simply and most commonly, when buying ABS or RMBS, you are buying a secured floating rate note that pays monthly income. Principal is repaid within about four years. Because of the way ABS and RMBS are structured, they offer your choice of credit risk, and returns.
ABS and RMBS are resilient, through the cycle product.
What are the benefits of ABS and RMBS?
- Choice – your choice of credit risk, returns, and interest paid monthly
- Higher yields – the opportunity to access higher yields for the risk taken
- Low risk – your investment is secured against multiple assets and there are low levels of arrears in residential mortgages
- Predictable income – receive monthly interest payments plus principal
- Transparency – you know the ratings, the risks and the returns expected
Competitive yields and low risk
ABS and RMBS investors have a choice: conservative investors have a choice of investment grade risk equal to the Commonwealth of Australia. For those investors wanting higher yield, and with a higher risk appetite, yields range from BBSW +2.5% up to BBSW +6%. Over decades in Australia, even the highest risk, highest yielding ABS and RMBS have virtually never lost investors a cent.
While ABS and RMBS are a generic financing technique, no one ABS and RMBS security is exactly the same. IAM has committed to providing its clients access and knowledge to ABS and RMBS markets, with this offering led by Tony Perkins who has years of experience in ABS and RMBS markets.
Get direct access to ABS and RMBS
IAM provides you with the opportunity to invest in both primary and secondary markets.
Meet our team
Amongst others, Tony has held senior roles at UBS Investment Bank as Executive Director and Head of Asset Backed Finance, and at Bluestone as Managing Director – Debt Markets, across ABS and RMBS, debt origination and fixed income. He was also a Partner – Corporate Advisory at Prime Financial Group.
James is a fixed interest product specialist with extensive experience in financial markets. He is currently Executive Director and Co-Head of Income Asset Management (IAM) - Capital Markets Division.
Prior to joining IAM, James was a founding member of MINT Partners Australia, a division of global broker BGC Partners; establishing the division in 2015 and growing AUM to over $1 billion in fixed income assets under management in 2020. James began his career in fixed income markets at FlIG Securities, advancing to Head of Middle-Market & Institutional client coverage.
He holds a Master of Business Administration (MBA) from Macquarie Graduate School of Management (MGSM), a Bachelor Business (Finance), and a Diploma of Financial Markets (Debt and RG146) from the Australian Financial Markets Association.
Matthew’s current responsibilities include providing credit commentary/views on the bond market and specific credit issuers with the aim of aiding investors to make better risk-return decisions. He is also part of a team of four within the Debt Capital Markets (DCM) team, which provides corporates, financials, property, and infrastructure companies with flexible funding solutions.
Prior to joining Income Asset Management, Matthew spent eight years working as a Senior Credit Portfolio Manager at Aberdeen Standard, where he was responsible for the credit portfolio construction and security selection across a wide range of investment-grade/high-yield, financial and non-financial sectors. Reporting directly to the Head of Australian Fixed Income, he oversaw a team of four and was the team’s ESG specialist.
Matthew has executed 1, 3, and 5-year credit-strategies that have been consistently above benchmark.
Matthew began his career at KPMG working in Auditing and Assurance within the consumer and industrials group and then spent six years at Colonial First State Global Asset Management as a Fixed Income Credit Analyst.
Matthew holds a Masters of Applied Finance degree from Macquarie University and a Bachelor of Commerce degree from UNSW.
