Fixed Income Securitized Products
The Securitized Products team identifies directional and relative-value trading opportunities in global securitized product markets, with a focus on residential mortgage-backed securities (RMBS).
The team believes that securitized investments currently offer the highest nominal and loss-adjusted yields available in the broader credit markets. Furthermore, due to new government regulations (Basel III, Volcker Rule), the team expects a sizeable risk transfer in this asset class over the next few years.
The investment team employs an opportunistic investment philosophy focused on adjusting views on the basis of realized performance and on increasing exposure with positive performance, which takes into account risk/reward skew, probability of winner/loser, timing of probability, and liquidity when investing. The strategy also uses top-down research to identify attractive sectors and collateral, as well as fundamental bottom-up models to identify attractive assets and macro- and sector-specific technicals.