The year ahead has multiple pockets of uncertainty such as rates and inflation, policy uncertainty, tariffs, and geopolitical events. At the same time, spreads are tight across broader risk markets, which limits the potential for spread tightening going forward. Key Points: We explore two possible scenarios for 2025 – volatile and benign. Focus on how asset-backed securities (ABS) can provide the solution in both outcomes. ABS has compelling properties including short spread duration, high quality, attractive carry, a floating rate nature, and embedded default protection.