Henderson to launch ABS recovery fund

By Elena Moya

LONDON (Reuters) - Asset manager Henderson Global Investors is planning to launch a pan-European Asset Backed Securities (ABS) recovery fund, aiming to profit from low asset prices, a director said.

"We are in the early stages of launching a European Asset Backed Securities recovery fund," said Jim Irvine, head of structured products at the asset manager, on the sidelines of the Distressed Investing Europe conference in London on Thursday.

The fund plans to invest in securities backed by real estate, consumer loans and collateralised debt obligations (CDOs) or collateralised loan obligations (CLOs), which are cheap relative to their value, Irvine said.

The European ABS market is suffering from a dearth of investors since the collapse of the U.S. subprime market, which spread fear and lack of trust.

"We think Europe is guilty by association with the U.S.," Irvine said, adding that the assets that the fund would buy are performing well.

"People's confidence is the main thing that's lacking at the moment, even if people see the opportunities," Irvine told Reuters.

He declined to say how big the fund would be because of the uncertainty in the market.

"The challenge now is to get people to move on," Irvine said.