ABS: A portfolio diversifier for volatile times

The early part of 2026 has been dominated by geopolitical risk and volatility. The US-Israeli war with Iran forced investors to price out expected interest rate cuts, sparking a broad sell-off across risk assets. While markets have staged a steady recovery post-ceasefire, further talks have stalled, and with Brent crude oil having again risen well above $100 per barrel, the growth outlook remains deeply uncertain. Many investors will be looking for ways to protect their portfolios from further volatility as the year progresses. In this environment, there are several features of European asset-backed...