Main Street versus Wall Street: Why the consumer is king in Securitized credit


Michelle Russell-Dowe,
Head of Securitized Credit

One of the beautiful things about the universe of Securitized debt is the diversification it provides and the ability for investors to pick their spots. If you believe aspects of the markets are in the later stages of a credit cycle, picking your spots can be quite advantageous. We believe Quantitative Easing (QE) has distorted financial markets and many traditional asset classes have become quite expensive. We contrast corporate debt or equity (what we call “Wall Street” finance), with the US consumer and housing finance (what we call “Main Street” finance). We think the latter appears to be in very good shape, making consumer-driven segments of securitized an attractive alternative to traditional income-generating investments.

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Schroders is a world-class asset manager operating from 35 locations across Europe, the Americas, Asia and the Middle East.

Schroders Wealth Management Solutions aims to help US private and high-net-worth investors solve for a range of income, wealth preservation, and alpha needs through a global network of distinctive long-term investments such as private equity, private debt, real estate, and other alternatives capabilities. We also provide customized portfolio solutions expertise to further enhance the achievement of today’s complex investment objectives.

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