Securitised debt: An introduction to the European market
Allocating to the European securitised market opens up access to diverse structures and underlying asset types, allowing investors to tailor risk and return profiles. Here the European Securitised team take a deep dive into the workings of the sector and evaluate the opportunities.
6 minute read
Key takeaways:
- European securitised is a deep, diverse and liquid market, but which is often poorly understood. It offers real economy exposures, with underlying asset pools consisting of the likes of residential mortgages and car loans, not often found in traditional fixed income.
- Investing in the European securitised sector provides access to attractive yields, diversification and resilience.
- Including securitised investments in a multi-asset portfolio has been shown to enhance returns and reduce risk.
The European securitised market offers the opportunity to capture risk-reward profiles that are distinct from what can be found among corporate bonds. As well real economy exposures, high quality, floating rate coupons and higher credit spreads than in traditional corporate credit all contribute to this. The different sub-sectors have various features, which we explain here, and how the sector offers access to attractive yields, diversification and resilience.
Read more
JHI
Related insights
All opinions and estimates in this information are subject to change without notice and are the views of the author at the time of publication. Janus Henderson is not under any obligation to update this information to the extent that it is or becomes out of date or incorrect. The information herein shall not in any way constitute advice or an invitation to invest. It is solely for information purposes and subject to change without notice. This information does not purport to be a comprehensive statement or description of any markets or securities referred to within. Any references to individual securities do not constitute a securities recommendation. Past performance is not indicative of future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
Whilst Janus Henderson believe that the information is correct at the date of publication, no warranty or representation is given to this effect and no responsibility can be accepted by Janus Henderson to any end users for any action taken on the basis of this information.
6 minute read
Key takeaways:
- European securitised is a deep, diverse and liquid market, but which is often poorly understood. It offers real economy exposures, with underlying asset pools consisting of the likes of residential mortgages and car loans, not often found in traditional fixed income.
- Investing in the European securitised sector provides access to attractive yields, diversification and resilience.
- Including securitised investments in a multi-asset portfolio has been shown to enhance returns and reduce risk.