Schroders securitised credit strategies use a research-oriented, value-driven approach to seek return by investing in securitised assets such as asset-backed securities, mortgage-backed securities (commercial and residential) and related loans. 

Our focus is on the data-intensive sectors, in which, we believe we possess a competitive advantage in analysing relative value opportunities. In surveying the broad, heavily regulated securitised landscape, we seek to identify opportunities by participating in sectors where capital provision is inefficient.

Our philosophy

We believe that in a market where size and complexity leads to exploitable inefficiencies, an in-depth understanding of the collateral and structure of each security is critical and is the foundation of generating returns.

We seek to add value at different points in the credit cycle by capitalising on cyclical opportunities among sectors with diverse underlying assets.

 


Competitive advantage: Invest in data rich sectors where we believe the opportunity can be assessed: 

- RMBS/Resi loans - Lending / Repo - CLO/CRE CLO  
- CMBS/CRE loans - Consumer ABS - CDO  
- Equipment - Shipping ABS - European ABS/MBS  
- Warehouse - Transport ABS    

Credit cycles: Understand the cycles and use capital structure to enhance opportunity and mitigate risk


Inefficiencies: Deploy capital into inefficient markets to earn excess return


Opportunistic: Capitalise on cyclical opportunities through best ideas approach


What we offer

We offer a range of a range of benchmarked, floating-rate or cash, opportunistic and direct real estate loan strategies. All of the strategies can invest in bonds across a broad spectrum of the securitised sectors and, where permitted, loans tailored to different risk/reward profiles. The team also manages a number of bespoke portfolios designed to meet a client’s specific needs and/or regulatory requirements. We have pooled funds available to UK pension schemes in the following strategies:

Enhanced Securitised Libor

Schroder Enhanced Securitised Libor is a fixed income strategy that invests in global ABS and MBS, with a focus on sectors where the team believes it possesses a competitive advantage. The strategy is managed with low duration under normal market conditions, benefiting from the fact that the investment universe has a substantial portion of floating-rate securities or securities with a shorter maturity. We offer a pooled fund, Schroder ISF Securitised credit, in USD, with GBP and EUR hedged share classes.

 

Further fund information >

 

  

Opportunistic Securitised

Opportunistic Securitised is a strategy that can uniquely traverse public and private debt markets whilst simultaneously retaining a preference for high quality assets. This approach capitalises on our capabilities to seek an attractive return with limited interest rate exposure that displays a low correlation to other high yielding fixed income and alternative fixed income asset classes. Our pooled fund is available in GBP only.


Contact us to find out more >

 

  

Loan strategies

Private equity style strategies capitalise on inefficiencies in real estate lending with a specific focus on opportunities in middle market commercial real estate loans and single-family rental loans. Regulatory changes have opened the door for asset managers to provide high quality investments that exhibit low correlation to other asset classes. Our pooled fund is available in GBP and EUR.


Contact us to find out more >

 

Contact us for more information on our securitised credit solutions

Securitised credit risk considerations

Mortgage or asset-backed securities may not receive in full the amounts owed to them by underlying borrowers

When interest rates are very low or negative, the strategy's yield may be zero or negative, and you may not get back all of your investment

The counterparty to a derivative or other contractual agreement or synthetic financial product could become unable to honour its commitments to the strategy, potentially creating a partial or total loss for the strategy

A failure of a deposit institution or an issuer of a money market instrument could create losses

A decline in the financial health of an issuer could cause the value of its bonds to fall or become worthless

The strategy can be exposed to different currencies. Changes in foreign exchange rates could create losses

A derivative may not perform as expected, and may create losses greater than the cost of the derivative

High yield bonds (normally lower rated or unrated) generally carry greater market, credit and liquidity risk

A rise in interest rates generally causes bond prices to fall

The strategy uses derivatives for leverage, which makes it more sensitive to certain market or interest rate movements and may cause above-average volatility and risk of loss

In difficult market conditions, the strategy may not be able to sell a security for full value or at all. This could affect performance and could cause the strategy to defer or suspend redemptions of its shares

Failures at service providers could lead to disruptions of strategy operations or losses

Contact Schroders

Schroders is a world-class asset manager operating from 32 countries across Europe, the Americas, Asia, the Middle East and Africa.


Worldwide locations

For any further questions, please use our online contact form.

Contact form

For specific queries, please visit our contacts page to find your Schroders representative.

Contacts