"Growth in the use of asset backed contributions (ABCs) has been largely driven by challenging market conditions in recent years. These conditions have persisted into 2013, and we’re finding that increasing numbers of companies and trustees are turning to ABCs to fund part or all of their deficits.” David Fripp, Pensions Partner at KPMG in the UK
The 4th edition of KPMG's asset backed funding survey shows that ABCs doubled in number over 2013, and we believe that growth will continue in the future.
Key trends and observations
The rate of new companies putting asset backed funding in place has accelerated, with 23 new ABCs made over the past year compared with seven new structures in our previous survey. Over the past year we have seen that:
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.