Why asset backed securities could dominate 2015

clock

Central banks are still working to reflate asset prices while investors chase yield. This means ABS are prime candidates for top performance this year, says Jim Caron, portfolio manager at Morgan Stanley Investment Management.

Two themes dominated investment returns since the start of the financial crisis. Firstly, the reflation of asset prices directed by central bank policies, and secondly, assets with the highest real yields have tended to perform best. These themes are likely to dominate once again in 2015. Securitised products, such as commercial mortgage backed securities (CMBS) and residential mortgage backed securities (RMBS) best fit into these themes, especially in Europe. They are attractively priced, benefit from policy action from the European Central Bank (ECB) and potentially can produce high...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Bonds

Partner Insight: Navigating bond markets in a volatile post-election market

Partner Insight: Navigating bond markets in a volatile post-election market

Kris Atkinson, portfolio manager, Fidelity Short Dated Corporate Bond Fund
clock 19 November 2024 • 6 min read
BlackRock unveils set of iShares bond UCITS ETFs

BlackRock unveils set of iShares bond UCITS ETFs

iBonds surpass $6.3bn AUM in EMEA

Cristian Angeloni
clock 07 November 2024 • 1 min read
Four Graphs explaining 'what happened to the year of the bond'

Four Graphs explaining 'what happened to the year of the bond'

Four experts write

Investment Week
clock 06 November 2024 • 3 min read
Trustpilot