Demystifying Securitised Credit
What is Securitised Credit
The securitised credit market consists of bonds backed by diversified pools of income-generating assets, such as consumer loans, residential and commercial mortgages, and corporate loans.
These securitised credit bonds typically have floating-rate coupons and provide investors with alternative income streams.
The global, mature, and growing securitised credit market, now estimated to be $4.7 trillion,1 also has a low correlation to traditional bond markets, offering attractive portfolio diversification benefits.
4 Types of Securitised Assets
Collateralized Loan Obligation (CLO)
Secured by corporate and business loans
Asset-Backed Security (ABS)
Secured by auto loans, credit card receivables, student loans
Commercial Mortgage-Backed Security (CMBS)
Secured by commercial properties – hotels, warehouses, offices, retail centers
Residential Mortgage-Backed Security (RMBS)
Secured by home mortgages
1 Goldman Sachs Asset Management, JP Morgan markets, Q2 2025. Includes Collateralized Loan Obligations, Asset-Backed Security, Residential Mortgage-Backed Security and Commercial Mortgage-Backed Security.
Why Invest in Securitised Credit
Attractive Yields
Securitised credit assets typically offer investors a higher yield, for a given credit rating, versus traditional fixed income investments. In return, elevated income from securitised credit helps smooth return streams in volatile markets.
Diversification
Securitised credit offers valuable portfolio diversification by providing a low correlation to traditional fixed income, which typically comprises Treasuries and investment-grade bonds.
Stability
Due to floating rate structures and short tenors, securitised credit is typically less sensitive to changes in interest rate expectations and can act as a volatility buffer for diversified portfolios.
Securitised credit assets have structural features, which are not typically present in corporate credit, to protect investors from losses.
Goldman Sachs' Long History in Securitised Assets
- 30+
- Years
- $110+
- BillionIn Securitised Assets
- 4
- Major Securitised SectorsCovered across CLOs, RMBS, CMBS and ABS
- 5
- LocationsIn New York, London, The Hague, Tokyo & Bengaluru
- 31
- MembersWith an average of 14+ years of experiece
Source: Goldman Sachs Asset Management, as of September 30, 2025. Assets Under Supervision (AUS) includes asset under management and other client assets for which Goldman Sachs does not have full discretion.
