Moving down the capital structure of higher rated corporate issuers can be a smart way to add higher returns to well diversified portfolios.
Benefits of becoming a client with FIIG
Trade opportunities
We've updated our Sample Portfolios for the month.
Trade opportunities
We've updated our Sample Portfolios for the month.
In the second article of our WIRE series focusing on Residential Mortgage Backed Securities (RMBS), we delve into some of the finer details of what matters for a RMBS transaction. For background, RMBS transactions are designed to cope with the worst conditions as envisaged, and yet the vast majority of the contractual provisions will never be used.
Residential Mortgage Backed Securities (RMBS) are a popular choice for wholesale investors as they can choose the risk and return they seek and the securities offer a yield premium over similarly rated corporate bonds.
A better diversified portfolio through the inclusion of bonds, can smooth out volatility, improve returns, and lower risk.
Opinion
Diversification is the easiest way to smooth volatility in a portfolio and therefore it has been brought sharply to the forefront of investors’ minds. Now is the perfect time to assess both the make-up of your portfolio and risk exposure within the portfolio.
Trade opportunities
We've updated our Sample Portfolios for the month.
Trade opportunities
We've updated our Sample Portfolios for the month. We expected July to be a relatively quiet month as companies have their year-ends and usually wait until they have published their results before asking to borrow money in the bond market.