Understanding Asset-Based Finance (ABF)

Asset-based finance (ABF) is defined as lending secured by specific assets that generate contractual cash flows, which can encompass consumer assets like auto loans and credit cards, as well as hard assets from various commercial sectors. This definition illustrates the breadth of ABF, suggesting its significance within a market that includes trillions of dollars in assets. Notably, the recent resurgence in interest surrounding ABF echoes historical investments in securitized products, such as the pioneering securitization of David Bowie's music royalties. The integration of public and private investments under a dedicated credit team highlights the evolving nature of asset-backed financing as a reliable investment option.