Threadneedle pulls ABS trust launch due to insufficient demand

Threadneedle has abandoned plans to launch an Asset Backed Income trust after it failed to raise sufficient capital, Investment Week can reveal.

The trust, which was set to list this month, would have targeted a net yield of 6% via investment in asset backed securities under the management of Henry Cooke, head of European secured credit at Threadneedle. It is thought the group had hoped to raise around £200m for the launch, but fundraising fell short of that target. "Following market testing we have concluded that there is insufficient investor demand to support the planned ABS vehicle at this time. We continue to believe there is an opportunity for clients in the sector, and may revisit it at a later date," a Threadneedle spo...