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Institutions hunt fixed asset-backed securities, research claims

High_yield_bondsNearly all (98%) of institutional investors globally “have some degree of concern” that inflation will reduce the real value of bond yields over the next 12 to 24 months, research suggests.

Just over a third of the 50 institutional investors surveyed said they would increase their allocations to higher yielding assets to combat their concerns.

According to Managing Partners Group, the firm that commissioned the research and which has $500 million (€463 million) of assets under management, these assets will include fixed asset-backed securities (ABSs).

The Eurozone consumer price index reached 1.8% in January, which was its highest in four years and up from 1.1% in December, the firm said quoting Eurostat.

The research also showed that 37% of institutional investors anticipated that fund managers would increasingly issue fixed income ABSs to raise their own assets under management. The primary reason was that ABS issuance allowed fund managers to raise money under different regulatory regimes.

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