Esoteric ABS:
Riding the Growth Wave Into 2025

Esoteric ABS
Demand for esoteric asset-backed securities (ABS) – securities backed by less traditional collateral such as music royalties, timeshare loans, and leases for aircraft and data center space – surged in 2024 and is expected to remain high in 2025.

Buyer interest in 2024 far exceeded the record level of available supply. Fortunately for insurers, who have helped lead the charge to invest in these securities, supply conditions in the year ahead appear promising: the tighter spread environment and high demand for esoteric ABS are favorable for both programmatic and first-time issuers.

In the Viewpoint “Esoteric ABS: Riding the Growth Wave into 2025,” Michael Nowakowski, Head of Structured Products at Conning, reviews the market dynamics and opportunities in the asset class in the year ahead.
Riding the Growth Wave Into 2025