Disclaimer: Views in this blog do not promote, and are not directly connected to any L&G product or service. Views are from a range of L&G investment professionals, may be specific to an author’s particular investment region or desk, and do not necessarily reflect the views of L&G. For investment professionals only.
US securitised: From crisis to confidence
How securitised markets have evolved since the global financial crisis.
The global financial crisis (GFC) highlighted several significant deficiencies in the securitisation rules. It had a profound impact on the US securitised market, leading to widespread reforms in regulation and market practices.
Despite this, some investors still associate securitised bonds with the 2008 crisis and avoid this asset class. However, the landscape has significantly changed since then. In our opinion, with improved regulations and market practices, securitised bonds now offer valuable opportunities for informed investors.
Understanding these changes could help investors recognise the potential benefits of diversification[1] and yield enhancement that securitised bonds can provide in an investor’s portfolio today.
The value of an investment and any income taken from it is not guaranteed and can go down as well as up, and the investor may get back less than the original amount invested. Past performance is not a guide to future performance.
[1] It should be noted that diversification is no guarantee against a loss in a declining market.
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