The DoubleLine Securitized Products Briefing for the first quarter 2025 highlights broad positive performance across securitized markets, despite macro volatility. Falling Treasury yields supported returns, though credit spreads widened.
Agency MBS outperformed Treasuries, benefiting from strong demand and attractive relative value. Non-Agency RMBS remained a relative safe haven amid corporate credit uncertainty, supported by rising home prices and low defaults. Non-Agency CMBS also performed well, aided by stabilizing property prices and strong issuance, though risks around tariffs persist.
ABS sectors saw strong demand and positive returns, with caution noted around rising subprime delinquencies. Hard-asset ABS and aviation-related deals strengthened. CLOs posted positive but modest returns relative to fixed-rate bonds, with senior tranches offering attractive opportunities.
Overall, securitized product yields remain compelling. Given the current environment, we are favoring selective, high-quality investments to navigate evolving tariffs, liquidity conditions, and credit risks.
To read more on DoubleLine’s update and outlook for the Securitized Products sectors of the market, download now.
