Tal Reback, global investment strategist for KKR's credit and markets business, said on the Bloomberg Intelligence Credit Edge podcast that Europe is entering a 'renaissance' as investors seek geographic diversification beyond the US. She said lower corporate leverage and strong cross-border buyout activity are supporting credit demand. KKR believes potential reforms to Europe's '1.2trn asset-backed securities market could unlock close to $1trn in high-grade asset-backed finance opportunities. Reback said insurers are currently discouraged from holding such exposure due to capital charges. 'If that reform ' which looks like it's trending in the right direction ' happens, that can open up what we estimate as close to $1 trillion of high-grade ABF opportunities,' Reback said. She added that European insurers hold less than 1% exposure to asset-backed securities, compared with about 17% in the US. KKR sees opportunities across auto finance, consumer credit, power generation, and solar...
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