Poll: Is the Revival of the Market for Asset-Backed Securities a Positive or Negative Development?

Among the more remarkable comebacks in financial history is the recent resuscitation of the global asset-backed securities (ABS) market that was pronounced dead after the 2007–09 global financial crisis. Earlier this week, we asked readers of the CFA Institute Financial NewsBrief whether they thought the revival was a positive or negative development for financial markets.

Poll: Is the revival of the market for asset-backed securities a positive or negative development for financial markets?

In our global poll, about 1 in 6 of more than 800 respondents thought it was a negative development, and 1 in 10 indicated that they are neutral or have no opinion about ABS. In other words, almost 75% of respondents in the global poll believe that ABS are beneficial for financial markets, provided that underwriting standards are improved, because they provide additional liquidity and investment opportunities. Respondents to our Asia-Pacific poll were even more enthusiastic, with more than 80% celebrating the return of ABS as a viable investment. Given the historically low interest rates globally and the quest for yield with safety, it is nearly certain that the ABS market will continue to grow in size and importance yet again.

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