In this episode of Perspectives, Client Portfolio Manager Phil Gioia sits down with Portfolio Manager Andrew Hsu to demystify the securitization process and address common misconceptions around transparency in securitized markets. Through a balance-sheet framework, the discussion compares corporate and securitized investments, illustrating how fixed asset pools, clearly defined liabilities, and structured equity positions create clarity and investor protections. The conversation explores key concepts such as credit and time tranching, waterfall structures, capital stack positioning, and real-world examples ranging from residential mortgages to data center securitizations tied to AI infrastructure. The episode also examines how post–GFC reforms have strengthened underwriting standards and deal structures, offering insight into why securitized assets can play a resilient and flexible role in institutional portfolios. Recorded November 15, 2025.
Mr. Hsu joined DoubleLine at its inception in 2009. He is a Portfolio Manager for the DoubleLine Total Return and ABS/Infrastructure Income strategies. Mr. Hsu is a permanent member of the Fixed Income Asset Allocation and Structured Products Committees. Prior to that, he was responsible for analysis and trading of structured products, where his focus included residential MBS and ABS transactions. Mr. Hsu’s responsibilities have also included structuring and negotiating terms on new-issue transactions and forming strategic partnerships with issuing entities in order to participate in key transactions. Prior to DoubleLine, he worked at TCW from 2002, where he focused on credit analysis for structured product securities and co-managed two structured product funds centered on debt and equity investments. During that time, Mr. Hsu was actively involved with portfolio management decisions and investment analysis, including reverse engineering complex CDO/CLO structures. He holds a BS in Finance from the University of Southern California and is a CFA® charterholder.
