2022 has proved to be a historically adverse environment for investors and, more specifically, one of the worst years on record for many fixed income sectors. As we head into 2023, the landscape across fixed income looks meaningfully more attractive as discounted bond prices, wider spreads and higher all-in yields now compensate fixed income investors with multiyear horizons. Further, the relative value of securitized credit vs. corporate bonds is near the most attractive it has been in over a decade. In DoubleLine’s Structured Products Outlook 2023: The Year of Yield, Phil Gioia, CFA, discusses the fundamentals and technicals across the Agency MBS and securitized credit markets and highlights potential return drivers and positioning for the year ahead.
