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.
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JHI
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These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.
Past performance does not predict future returns. 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.
The information in this article does not qualify as an investment recommendation.
There is no guarantee that past trends will continue, or forecasts will be realised.
Marketing Communication.
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.