RT Journal Article
SR Electronic
T1 What to Expect out of Europe: Opportunities
for U.S. Investors
JF The Journal of Structured Finance
FD Institutional Investor Journals
SP 220
OP 221
DO 10.3905/jsf.2013.18.4.220
VO 18
IS 4
A1 Dean Atkins
YR 2013
UL https://pm-research.com/content/18/4/220.abstract
AB This panel discussed the current investment situation in Europe with regard to securitized assets in the context of the ongoing sovereign debt crisis and resultant volatility. Opportunities for U.S. investors are broadly broken down into two distinct categories: first senior and/or vanilla assets and second mezzanine/junior exposures. Bad banks have disappointed as a source of supply, but the non-core portfolios of banks have sold down significant volumes of commercial real estate exposure and trades are resulting from banks’ need to raise regulatory capital. Euro periphery exposures offer great risk-adjusted returns. U.K. residential mortgage-backed securities (RMBS) are a disappearing market, whereas Dutch RMBS still represent great value for investors. The panel discussed various investment picks.TOPICS: Developed, portfolio theory, portfolio construction