In The Spotlight

Demystifying Securitised Credit

Securitised credit has a low correlation with traditional bond markets, which helps diversify portfolios and provides alternative income opportunities.
intro-securitised-credit_0925_16-9_1360x765.png
In The Spotlight

Demystifying Securitised Credit

Securitised credit has a low correlation with traditional bond markets, which helps diversify portfolios and provides alternative income opportunities.
intro-securitised-credit_0925_21-9_1840x788.png
In The Spotlight

Demystifying Securitised Credit

Securitised credit has a low correlation with traditional bond markets, which helps diversify portfolios and provides alternative income opportunities.
intro-securitised-credit_0925_3-1_2480x827.png
OVERVIEW

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.

A Guide to Demystifying Securitised Credit
Our guide explains how securitised credit stands apart from traditional bonds and basics of the securitisation process.
a guide to demystifying securitised credit
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 Global Securitised Income Bond Portfolio
Through the Goldman Sachs Global Securitised Income Bond Portfolio (GSIB), investors have easy access to a broader spectrum of quality securitised bonds that provides a strong, alternative income potential.
Read more
Investing in Goldman Sachs Global Securitised Income Bond
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.

“
In today’s market where credit spreads are fair/tight, allocation to securitised credit can diversify fixed income portfolios (usually skewed towards global bonds/corporates) and provide an alternative higher-yielding source of income.”
Avatar
Jon Calluzzo
Managing Director, Head of Securitised Client Portfolio Management
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Risk considerations and disclosures

Views and opinions expressed are for informational purposes only and do not constitute a recommendation by Goldman Sachs Asset Management to buy, sell, or hold any security. Views and opinions are current as of the date of this publication and may be subject to change, they should not be construed as investment advice.

Individual portfolio management teams for Goldman Sachs Asset Management may have views and opinions and/or make investment decisions that, in certain instances, may not always be consistent with the views and opinions expressed herein.  

This material has been issued for use in or from Singapore by Goldman Sachs Asset Management (Singapore) Pte. Ltd. (Company Number: 201329851H).

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Compliance code: 451709-OTU-2345603
Date of first use: October 10, 2025