2026 Market View: Securitized Credit

Dec 04, 2025

Tom Mowl, BlueBay Senior Portfolio Manager, summarises the market in 2025 for the asset class, and gives his thoughts for 2026.

  • Securitized Credit delivered strong risk-adjusted returns in 2025, with resilience underpinned by high-quality collateral, investor demand, and robust fundamentals despite isolated weaknesses in non-prime consumer sectors.
  • Periods of elevated primary market supply, particularly in European CLOs and ABS, presented active managers with attractive entry points and chances to add value through security selection and asset allocation rotation.
  • The 2026 outlook remains positive, with Securitized Credit offering high credit quality, default protection, attractive spreads versus corporates, and low correlation to traditional fixed income/equities, alongside flexibility in floating-rate structures and shorter spread durations.
  • Active management continues to be key for generating alpha, leveraging market opportunities in both volatile and stable environments through dynamic allocation across asset classes, ratings, and durations.


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