Global Perspectives: Demystifying securitized fixed income

In this episode, Portfolio Managers John Kerschner and Nick Childs discuss the securitized subset of the fixed income market and where they see opportunities for investors to diversify their portfolios and uncover income opportunities.

Key takeaways:
• In contrast to corporate credit, securitized assets appear to be pricing in more of a hard landing for the U.S. economy, which is presenting attractive relative value opportunities.
• As the Fed nears the end of its hiking cycle, investors looking to add duration to their fixed income portfolios may find strong opportunities in agency mortgage-backed securities, where we think spreads have reached their wides.
• On the other hand, the Fed remains hawkish, and yields in short-duration securitized credit should remain attractive sources of income for investors in a higher-for-longer rate environment.

For those outside the US, for professionals only. Capital at risk.

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