DoubleLine’s Structured Products Briefing discusses the drivers of performance across Agency mortgage-backed securities, non-Agency residential mortgage-backed securities, commercial mortgage-backed securities, asset-backed securities, and collateralized loan obligations during the quarter. Fourth quarter performance was positive across most asset classes. Corporate credit spreads generally tightened in the quarter, while securitized credit experienced modest spread widening and credit curve steepening. Our expectation for a lag in securitized spread tightening relative to corporates should allow for securitized credit to realize additional return potential on a relative basis in 2023.
