Securitised Credit

Our philosophy

Securitised credit can be a beneficial addition to a portfolio for four main reasons:

• Yield pick-up – can offer a yield premium compared to traditional fixed income instruments
• Floating rate exposure – investors can benefit from rising rates. With current rates at historical lows, securitised credit, which is largely floating rate, is well-positioned to potentially outperform traditional fixed income instruments
• Credit enhancement and alignment of interests – many newer issues (post financial crisis) have structural features that can enhance investor protection (such as tighter covenants and greater overcollateralisation)
• Diversification – securitised credit has low correlation to other fixed income asset classes and can increase portfolio diversification

Our process

We invest in all securitised credit sectors, across all rating categories and do so “globally” from one platform in London. Our global scale and investment tools support:

• The ability to determine relative value and assess risk across markets
• A seamless capacity to invest where we are finding best opportunities
• Access to significant trading flows where we can use our relationships and size to negotiate attractive prices for clients

HSBC strengths

• An established and experienced team of 15 dedicated specialists, forms one of the largest securitised credit teams in the industry
• Significant market access to a wide range of securitised credit opportunities which is not easily replicated in the securitised credit space
• Our global reach differentiates us from many competitors that focus purely on US and/or European ABS

Source: Bloomberg, data as of 18 September 2020 Investment involves risks. Past performance is not indicative of future performance.

Important Information:

This page is prepared for general information purposes only and does not have any regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive it. This page does not constitute an offering document and should not be construed as a recommendation, an offer to sell or the solicitation of an offer to purchase or subscribe to any investment.
This advertisement has not been reviewed by the Monetary Authority of Singapore.
Investors and potential investors should not invest in the Fund solely based on the information provided in this document and should read the prospectus (including the risk warnings) and the product highlights sheets, which are available upon request at HSBC Asset Management (Singapore) Limited (“AMSG”) or our authorised distributors, before investing. You should seek advice from a financial adviser. Investment involves risk. Past performance of the managers and the funds, and any forecasts on the economy, stock or bond market, or economic trends that are targeted by the funds, are not indicative of future performance. The value of the units of the funds and income accruing to them, if any, may fall or rise and investor may not get back the original sum invested. Changes in rates of currency exchange may affect significantly the value of the investment. AMSG has based this document on information obtained from sources it reasonably believes to be reliable. However, AMSG does not warrant, guarantee or represent, expressly or by implication, the accuracy, validity or completeness of such information.

HSBC Asset Management (Singapore) Limited
10 Marina Boulevard, Marina Bay Financial Centre, Tower 2, #48-01, Singapore 018983
Telephone: (65) 6658 2900 Facsimile: (65) 6225 4324
Website: www.assetmanagement.hsbc.com/sg
Company Registration No. 198602036R