Overview
Private asset-backed securities (ABS) are financial instruments collateralized by pools of loans, leases, receivables or other cash flow streams. Nuveen's Private ABS strategy targets consumer and commercial asset classes demonstrating resilience across economic cycles, emphasizing structures to withstand severe stress scenarios. The strategy can provide stable cash flows through contracted commercial obligations or consumer assets that exhibit high repayment propensity, balancing yield opportunities with downside protection through careful collateral selection and structural safeguards.
Why invest in Private ABS with Nuveen?
- Experience: Nuveen’s Private ABS platform was formed in 2014, recognizing an untapped market opportunity.
- Attractive risk-adjusted returns: A limited investor base can provide a higher spread relative to comparably rated corporate bonds.
- Proprietary deal sourcing: Access to a niche banking community that can provide differentiated investment sourcing opportunities.
- Diversification: Unique underlying asset pools offer diversification benefits relative to more traditional public ABS transactions.
- Responsible investing: Private ABS origination assessed for alignment with the U.N. Sustainable Development Goals.
- Duration: Deals often have a shorter duration profile than traditional investment-grade corporate portfolios.
