Back to Basics: RMBS

Residential mortgage-backed securities (RMBS) are an under-utilised asset class for many investors, despite boasting some of the lowest default rates across the global fixed income market and offering higher yields and greater investor protection than vanilla corporate bonds of the same rating. In part this is due to the complex nature of the asset class and that it is generally less understood than other areas of fixed income, however in an environment where we have reached peak rates and could see recessions in 2024, European RMBS is a compelling solution for those who want an attractive yield and at the same time benefit from an asset class which has strong structural protections baked in to its design.

On our first educational webinar in our newly launched Back to Basics series, Aza Teeuwen (Partner, Portfolio Management) and Douglas Charleston, (Partner, Portfolio Management) provided a comprehensive understanding of the key aspects and trends within the European RMBS market.