Rethinking Securitized Credit’s Role in Your Portfolio

Securitized credit enters 2026 with a supportive backdrop, as steady economic growth, potential policy changes, and continued consumer strength could help sustain demand across the asset class.

The opportunity set remains attractive because securitized markets offer a wide range of structures and risk levels, while active selection can help investors focus on areas with stronger collateral and resilient performance.

Income potential is also compelling, especially in CLOs, where spreads have recently offered a meaningful premium versus investment-grade corporate bonds.

At the same time, securitized credit can add diversification through pooled exposures and floating-rate features that may be less sensitive to higher-for-longer rates.

The main risk is selectivity: weaker borrowers or lower-quality structures still require careful analysis, so disciplined security picking remains essential.