KEY TAKEAWAYS • The excess yields available from investment-grade and high-yield corporate bonds are beginning to attract “crossover” investors • Asset-backed securities look attractive in the current rising interest rate environment given their shorter duration • Including securitised credit in a fixed-income portfolio could provide diversification benefits due to its lower correlation with corporate credit • Security selection will likely be the key to alpha generation for securitised credit in the coming years.
.png)
.png)
