What is secured finance?

Secured finance investments are debt assets secured by high-quality collateral.

At over $30 trillion by our estimation, the market offers a large variety of liquid public and illiquid private markets investments. The three largest areas that we focus on are:

  • Residential and consumer, e.g. residential mortgage and credit card pools.
  • Commercial real estate, e.g. commercial mortgage loans and infrastructure.
  • Secured corporates, e.g. collaterised loan obligations and corporate loan pools.

We believe secured finance has the potential to provide a significant yield premium relative to investment-grade corporate bonds without compromising on credit quality.

Attractive-risk-adjusted-returns-chart
 
Source Insight: As of 28 February 2017. The spreads shown are for illustrative purposes only and are not indicative of the strategy spread. Indices for secured finance universe and corporate bonds are Insight Secured Finance strategy and Barclays Euro Corporates, respectively.

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