Global Head of Securitised Products John Kerschner and Portfolio Manager Ian Bettney from Janus Henderson’s Global Securitised Team examine how CLOs and other securitised credit have weathered recent volatility, and why selectivity and active management remain central to capturing opportunities across the market.
Looking through geopolitical noise
Securitised credit markets have navigated a volatile start to the year with resilience. Against a backdrop of heightened geopolitical uncertainty, shifting interest rate expectations and idiosyncratic stress, repricing in securitised spreads has remained orderly, underpinned by strong investor demand and supportive technicals.
Amid such volatility, the defining benefits of securitised investments, namely diversification, structural protection and active risk management, come to the fore. Securitised investments tend to be driven less by geopolitical shocks and more by underlying consumer and collateral performance. That distinction has recently helped limit drawdowns and dampen volatility in securitised credit, in contrast to the larger gyrations experienced by broader risk markets.
