What Can Structured Finance Do for Your Portfolio?
Key Takeaways
- At $17 trillion, securitized markets play a vital role in global financing yet are under-represented in many client portfolios.
- Nearly two decades after the Global Financial Crisis (GFC), securitization markets demonstrate maturity, strong regulation, and resilience.
- Securitized credit offers diversified fundamentals and low-rate sensitivity, resulting in lower correlation to traditional corporate allocations.
- Investors can access attractive risk-adjusted yields in securitized credit relative to corporate bonds.
- The source of additional yield in securitized assets needs to be properly understood to build resilient portfolios.
- Agency mortgage-backed securities (MBS) provide a yield pickup compared to US Treasurys (UST), along with enhanced liquidity.
Important Disclosures
This marketing communication is provided for informational purposes only and should not be construed as investment advice. Investment decisions should consider the individual circumstances of the particular investor. Any opinions or forecasts contained herein reflect the subjective judgments and assumptions of the authors do not necessarily reflect the views of Loomis, Sayles & Company, L.P. Investment recommendations may be inconsistent with these opinions. There is no assurance that developments will transpire as forecasted and actual results will be different. Information, including that obtained from outside sources, is believed to be correct, but Loomis Sayles cannot guarantee its accuracy. This information is subject to change at any time without notice.
Market conditions are extremely fluid and change frequently.
Diversification does not ensure a profit or guarantee against a loss.
Any investment that has the possibility for profits also has the possibility of losses, including the loss of principal.
There is no guarantee that the investment objective will be realized or that the strategy will generate positive or excess return.
Past market experience is no guarantee of future results.
For Institutional Use Only. Not For Further Distribution
8862705.1.1
Meet the Author
