Episode 166: Opportunities in Securitized

In this episode, we dive deep into the securitized markets with Dmitri Rabin, Head of Securitized at Jennison Associates. Dmitri provides an insightful overview of how the agency MBS market has performed year to date following a tough 2022, discussing how rising interest rates, extension risk, and volatility have impacted the market. He highlights the current opportunities within the mortgage market, where valuations and spreads offer potential for investors—particularly in the extended, lower-coupon bonds. Dmitri also shares his perspective on key sectors like ABS and why Jennison favors high-quality, liquid securities that still offer attractive spreads. His analysis is grounded in long-term investment principles that fit well with insurance companies' needs for both yield and liquidity.

We also explore broader market trends such as the challenges in commercial real estate and its implications for CMBS and banks, and we discuss why Jennison takes a cautious approach toward CLOs. Dmitri breaks down how careful security selection, liquidity management, and collaboration within Jennison’s credit and rates teams drive success in securitized products. His experience and thoughtful approach to managing risk while seeking opportunity provide listeners with valuable insights into navigating today's complex fixed-income landscape.